The BSE Sensex falls after the US Federal Reserve announces the start of its tapering,raising some concerns about foreign investor sales. The BSE Sensex was down 0.73 percent and Nifty fell 0.79 percent at 11.53 am.
Overseas investors are net buyers of more than $18 billion so far this year,the biggest in emerging Asia,according to Deutsche Bank data earlier this month.
Interest-rate sensitive blue chips lead declines,reversing gains from Wednesday when the RBI unexpectedly kept interest rates on hold.
Analysts note the RBI could resume rate hikes if inflation spikes.
Software service exporters gain as a strengthening dollar on the back of the Fed taper could weaken the rupee,improving margins from overseas.
BSE Sensex trims initial gains by 14 pts after US Fed announcement
(PTI) In a volatile market,the S&P BSE benchmark Sensex failed to maintain initial gains and was quoted lower by 140 points in late morning trade on fresh selling pressure,mainly in banking,refinery,power,capital goods and realty sectors on fears of a slowdown in foreign capital inflows.
The market sentiment was hit adversely following the Federal Open Market Committee (FOMC) after a two-day monetary policy yesterday,announced plans to cut its monthly bond purchases to $75 billion from $85 billion.
The Sensex resumed higher at 20,959.80 and firmed up further to a high of 21,017.45 on initial buying on the back of strong capital inflows from foreign funds.
However,it declined immediately to 20,646.03 before quoting at 20,719.20 at 1040hrs.
The NSE 50-share Nifty also moved down by 53.05 points or 0.85 pct to 6,164.10 at 1040hrs.
Major losers were Larsen (2.83 pct),Icici Bank (2.44 pct),Hero Motocorp (2.25 pct),ONGC (2.24 pct),Bharti Airtel (2.13 pct),HDFC (1.99 pct),BHEL (1.87 pct),Bajaj Auto (1.87 pct),SBI (1.84 pct) and RIL (1.22 pct).
Asian markets edged higher in their early trade after the US Federal Reserve expressed enough confidence in the US labour market to taper asset purchases while promising to hold interest rates close to zero in the world’s biggest economy.
Key benchmark indices in Taiwan,Hong Kong,Singapore,Japan,Indonesia and South Korea rose by 0.01 pct to 1.63 pct. while China’s Shanghai Composite fell 0.09 pct.
BSE Sensex surges nearly 158 points buoyed by RBI decision,no effects from US Fed tapering
The benchmark BSE Sensex gained nearly 158 points in early trade today on sustained buying by funds and retailers amid a firming trend on other Asian bourses.
The 30-share barometer,which had gained 247.72 points in the previous session,surged by 157.59 points,or 0.75 per cent,to 21,017.45.
Brokers said sentiments buoyed after the RBI unexpectedly decided to keep key policy rates unchanged amid a firming trend in the Asian region after the US Fed decided to trim stimulus from next month.
Stocks of IT,realty and metal sectors led the rally.
On similar lines,the National Stock Exchange index Nifty moved up by 46.60 points,or 0.74 per cent,to 6,263.75.
Among other Asian markets,Hong Kong’s Hang Seng index rose by 1.13 per cent,while Japan’s Nikkei gained 1.60 per cent in early trade today. The US Dow Jones Industrial Average ended 1.84 per cent higher in yesterday’s trade.