Saturday, December 21, 2024 | 03:42 AM ISTEN Hindi

Sensex snaps 2-day winning run, slips 289pts; Nifty below 17100; banks fall

CLOSING BELL: Selling in heavyweights like SBI (down 2 per cent), HCL Tech, Infosys, Reliance Industries, HDFC Bank, HDFC, and ICICI Bank weighed on the benchmarks

SI Reporter New Delhi

Sensex snaps 2-day winning run, slips 289pts; Nifty below 17100; banks fall

9:19 AM

Sensex Heatmap :: Heavyweights like RIL, HDFC duo, TCS weigh on the index

9:18 AM

Opening Bell :: Nifty holds 17,100

9:17 AM

Opening Bell :: Sensex declines 250 pts amid Powell's slowdown warning

9:12 AM

ALERT :: 'Do Not Exercise' facility for options trades to be discontinued from March 2023 F&O expiry, says NSE

>> Those unable to square off trades will have to settle trades with shares, as per reports

9:09 AM

Pre-Open Session :: Nifty slips below 17,100

9:08 AM

Pre-Open Session :: Sensex slips 150 pts

9:04 AM

Currency check :: Rupee opens stronger at 82.38/$ vs Tuesday’s close of 82.66/$

8:57 AM

US Fed meeting review :: 'Fed may blink in the next show'

Powell in its aggressive battle to tame inflation stands hawkish and raised interest rate by quarter percentage point, despite financial turmoil weighing the economy post collapse of Silicon Valley Bank. FOMC participants’ dot plot continue to recommend that they will keep the current pace of rate hikes in 2023.

However, markets would take a sigh of relief with Fed setting the stage for peaking of rate hikes, hinting departure from previous statements which cautioned “ongoing increases” would be appropriate to tackle inflation, despite status quo in quantitative tightening.

Despite the much anticipated 25 bps rate hike, bond yields are falling suggesting a classic understanding that rates have peaked out and are set to reverse ahead. Given the indicstions from the bond markets, Fed may blink in the next show.

Views by: Dhawal Ghanshyam Dhanani, Fund Manager, SAMCO MF

8:52 AM

US Fed meeting review :: 'Equities seem disconnected from fundamentals'

We continue to look for one more 25bp hike in May and an extended pause before the Fed eases in early 2024. However we reckon in such rapid tightening cycles, speed can kill, if stress extends beyond the banking system, which could take the policy dynamics to a different scale. We do not see elevated risks of a banking crisis contagion, even though we expect current banking liquidity lines to continue in the near term. Nevertheless, uncertainty remains high and credit conditions ahead are likely to further tighten and materially impact economic activity. Current (tight) lending standards already non-recessionary highs and imply that US bank loan growth will see a contraction in 12 months from now.

The massive action and perception divergence between global equities and the rates markets makes us uneasy. Equities still seem disconnected from fundamentals, possibly placing hopes on lower real yields and a re-expanding Fed balance sheet. We continue to see a case for tricky sacrifice ratios and financial cracks, implying mispricing by equities.

Views by: Madhavi Arora, Lead – Economist, Emkay Global Financial Services

8:47 AM

US Federal Reserve raises policy rate by 25 bps; 9th straight hike

"The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 per cent over time. In determining the extent of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments", the statement added. READ MORE