Indian Equity Market Starts Steady Prior to US Federal Reserve Rate Announcement
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Mumbai, Dec 18 (NationPress) The Indian equity market opened on a steady note on Wednesday as investors are keenly awaiting the US Federal Reserve's decision regarding interest rates.
At approximately 9:33 am, the Sensex was recorded at 80,651.44, reflecting a decrease of 33.01 points or 0.04 percent, while the Nifty stood at 24,328.75 after a drop of 7.25 points or 0.03 percent.
The overall market sentiment remained unfavorable. On the National Stock Exchange (NSE), 882 stocks were in the positive territory, whereas 1,306 stocks were trading in the negative.
The global market's attention is fixed on the Fed's decision to be announced on Wednesday (US time). A reduction of 25 basis points is currently anticipated by market participants.
“The focus will be on the Fed's commentary. A notable trend in the Indian market is the superior performance of the broader market, where positive earnings reports are being recognized by investors and there are no signs of FII selling,” analysts noted.
The Nifty Bank index fell by 152.85 points or 0.29 percent, settling at 52,681.95. The Nifty Midcap 100 index traded at 58,900.55 after a decrease of 201.35 points or 0.34 percent. Meanwhile, the Nifty Smallcap 100 index was at 19,346.40, down by 52.05 points or 0.27 percent.
Within the Sensex group, the greatest declines were seen in Tata Motors, Power Grid, L&T, Maruti, ICICI Bank, IndusInd Bank, UltraTech Cement, SBI, and NTPC. Conversely, Sun Pharma, HCLTech, Tech Mahindra, TCS, ITC, Bharti Airtel, and M&M stood out as the leading gainers.
In the Asian market landscape, all markets were trading positively with the exception of Japan and Bangkok, while China, Hong Kong, Seoul, and Jakarta showed gains.
In the US stock markets, the Nasdaq Composite and S&P 500 closed lower by 0.32 percent and 0.39 percent, respectively, while the Dow Jones Industrial Average dropped by 0.61 percent in the previous trading session.
Foreign Institutional Investors (FIIs) divested equities worth Rs 6,409.86 crore in India on December 17, while domestic institutional investors acquired equities worth Rs 2,706.48 crore on the same day.
Market experts suggest that the short-term market structure has weakened as FIIs have turned into net sellers during rallies.
“The trend of FII buying noted in early December has turned out to be, as anticipated, a temporary phenomenon. The recent sell-off of Rs 6,410 crores in the cash market indicates that further selling may follow during market rebounds,” they added.
