Cautious about ‘Fed’ decision, indices fall

Mumbai : Investors took a cautious stance in Wednesday’s session ahead of the US central bank – the Federal Reserve’s decision to hike possible interest rates. As a result, the stock market was quickly taken over by the office bearers for two consecutive sessions and the indices fell.

The Mumbai Stock Exchange index ended the day at 59,456.78, down 262.96 points or 0.44 per cent, on a mixed performance in global markets. The Sensex made a positive start in the day’s volatile trade, falling 444.34 points to touch a low of 59,175.40. On the other hand, Nifty closed at 17,718.35, down 97.90 points.

Before the announcement of the Federal Reserve’s policy, capital markets around the world were volatile. In addition, geopolitical tensions have escalated due to reports that Russian troops have begun to regroup in Ukraine. Due to this the fear of inflation is being expressed. Vinod Nair, Head of Research, Geojit Financial Services, said any military action anywhere in the world is likely to have an adverse impact on the global economy, including the country’s economy, in the near future and the same concerns gripped the markets on Wednesday.

IndusInd Bank was the biggest loser in the Sensex with a fall of 3.19 per cent. Power Grid, UltraTech Cement, Larsen & Toubro, NTPC, HCL Technologies, Dr Reddy’s, TCS and Bharti Airtel were the losers. On the other hand, Hindustan Unilever, ITC, Bajaj Fis, Tech Mihadra, Reliance Industries, Nestle and HDFC Bank rose up to 1.60 per cent.

Rupee again at eighty

The rupee depreciated 26 paise against the dollar in a single transaction on Wednesday. As a result, on the Forex platform, it settled at 80 at the end of the session. The strengthening of the dollar against other currencies and a fall in the domestic capital market helped the rupee to touch the 80 level again. Rupee started trading at 79.81. Later in the day’s session, it touched a high of 79.79. It finally hit a low of 80 and rested at that level towards the end of the day.

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