Domestic shares snapped a two-day streak on Thursday, amid negative global cues. Investors digested the latest interest rate hike by the U.S. Federal Reserve and comments from Fed Chair Jerome Powell and Treasury Secretary Janet Yellen. Trading was volatile due to expiry of weekly index options on the NSE. The Nifty closed below the 17,100 level after hitting day's high of 17,205.40 in afternoon trade.
The barometer index, the S&P BSE Sensex declined 289.31 points or 0.50% to 57,925.28. The Nifty 50 index lost 75 points or 0.44% to 17,076.90.
Reliance Industries (down 1.28%), Infosys (down 1.08%) and HDFC Bank (down 0.80%) were major drags.
In the broader market, the S&P BSE Mid-Cap index slipped 0.45% while the S&P BSE Small-Cap index fell 0.15%.
The market breadth was negative. On the BSE, 1,379 shares rose and 2,137 shares fell. A total of 118 shares were unchanged.
The Federal Reserve on Wednesday raised interest rates by another 25 basis points to 4.75% to 5%, the highest level since September 2007. However, the central bank signalled it was on the verge of pausing future hikes in view of recent turmoil in the financial sector.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper declined to 7.342 from 7.354 in previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.27, compared with its close of 82.5950 during the previous trading session.
MCX Gold futures for 5 April 2023 settlement advanced 0.93% to Rs 59,300.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 102.41.
The United States 10-year bond yield fell 0.81% to 3.471.
In the commodities market, Brent crude for May 2023 settlement declined 75 cents or 0.98% to $75.94 a barrel.
Global Markets:
European shares declined while Asian stocks ended mixed on Thursday, following Wall Street's reaction overnight after the U.S. Federal Reserve hiked rates by another 25 basis points.
The Swiss National Bank on Thursday morning announced it would raise its benchmark interest rate by 50 basis points, taking it to 1.5%.
The Bank of England will be announcing its own interest rate decision at midday in London.
US stocks end sharply lower on Wednesday after the U.S. Federal Reserve delivered a widely expected policy hike. U.S. Federal Reserve Chair Jerome Powell re-stated his commitment to curbing inflation, including the possibility of more interest rate rises.
The Federal Open Market Committee said in a post-meeting statement that it "will closely monitor incoming information and assess the implications for monetary policy." Fed projections call for just one more hike this year.
Treasury Secretary Janet Yellen said Wednesday that the FDIC was not considering providing "blanket insurance" for banking deposits. Yellen made the remarks at a hearing of a U.S. Senate appropriations subcommittee. Yellen said the administration was not considering expanding bank deposit guarantees beyond the current limit of $250,000, as per reports.
Stocks in Spotlight:
Sirca Paints India rose 3.95%. The paint maker's board will consider a bonus share issue on 29 March 2023.
Man Industries (India) surged 3.85% after the company said it has started production at its new plant at Anjar, Gujarat on 22 March 2023. The new Anjar plant will manufacturing of ERW API grade line pipes to serve hydro-carbon and City Gas Distribution (CGD) sector.
Larsen & Toubro lost 0.34%. The EPC major on Wednesday announced that it has entered into an electrolyzer manufacturing binding agreement with France-based McPhy Energy for a long-term partnership to explore the opportunities unfolding in the emerging green hydrogen market.
Nazara Technologies advanced 0.34% after Absolute Sports, the parent company of Sportskeeda announced that it has signed definitive agreements, to acquire a 73.27% stake in Pro Football Network LLC (PFN), a premier source of coverage and analysis of the NFL (United States' most watched sport) and college football. Absolute Sports (Sportskeeda) is a subsidiary of Nazara Technologies.
Maruti Suzuki India rose 1.07% after the company said it has planned price increase in April 2023 which shall vary across models.
Hindustan Aeronautics (HAL) fell 4.87% after the offer for sale (OFS) opened for non-retail investors today, 23 March 2023. Through the OFS, the Government of India proposes to sell up to 58,51,782 equity shares (representing 1.75% stake), with an option to sell an additional 1.75% stake or 58,51,781 equity shares in case of oversubscription. The floor price for the sale has been set at Rs 2,450, a 6.67% discount to the stock's closing price of Rs 2625.20 on Wednesday, 22 March 2023.
H.G. Infra Engineering rallied 4.83% after the civil construction company announced that it has been declared as lowest bidder (L-1) by National Highways Authority of India (NHAI) for a road construction project in Jharkhand.
Glenmark Pharmaceuticals fell 0.10%. The drug maker said that it has received final approval from US Food & Drug Administration (USFDA) for Calcipotriene and Betamethasone Dipropionate Foam, 0.005%, 0.064%.
G R Infraprojects jumped 6.09%. The civil construction company emerged as lowest (L‐1) bidder for tender invited by National Highways Authority of India (NHAI) for a road project amounting to Rs 1,226.87 crore in Uttar Pradesh.
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