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Sensex down 122 points; realty, metal stocks lose shine

Domestic sentiment hit as Fed signals one more rate hike by year-end


Chennai, Sept 21:  

The benchmark BSE Sensex was trading down by nearly 130 points as investors booked profits a day after the US Federal Reserve signalled one more rate hike by the end of this year.

The Fed held interest rates steady and announced a plan to start shrinking its balance sheet by reducing its holdings of US Treasury bonds and mortgage-backed securities.

“After the Fed rate decision, Asian markets have come under slight pressure but it hasn’t been a tipping point for Indian markets,” said Anand James, chief market strategist with Geojit Financial Services.

Heavy fall in rupee after the US Federal Reserve announced plans to wind down its crisis-era stimulus and hinted at another interest rate hike before the end of the year also dampened the trading sentiment.

At 12.30 p.m., the 30-share BSE index Sensex was down 121.83 points or 0.38 per cent at 32,278.68 and the 50-share NSE index Nifty was down 46.75 points or 0.46 per cent at 10,094.40.

Among BSE sectoral indices, realty index plunged 1.86 per cent, followed by metal 1.16 per cent, FMCG 0.93 per cent and consumer durables 0.86 per cent. On the other hand, healthcare index gained the most by 2.33 per cent followed by IT 0.12 per cent.

Top five Sensex gainers were Dr Reddy’s (+5.03%), Cipla (+3.63%), Lupin (+3.49%), Sun Pharma (+2.66%) and TCS (+1.02%), while the major losers were ICICI Bank (-1.94%), Coal India (-1.66%), Axis Bank (-1.21%), ONGC (-1.13%) and ITC (-1.07%).

“After the Fed rate decision, Asian markets have come under slight pressure but it hasn’t been a tipping point for Indian markets,” said Anand James, chief market strategist with Geojit Financial Services.

MSCI’s broadest dollar-denominated index of Asia-Pacific shares outside Japan was down 0.5 per cent.

“From a domestic point of view, investors are locking in gains after the markets sustained at peak levels for a long time. The market is looking for further cues to push prices higher,” he added.

ICICI Bank fell as much as 2.4 per cent to its lowest since August 11, making it the top drag on both indexes.

The Nifty PSU bank index fell as much as 1.4 per cent, heading for a fourth session of fall in five, on profit-taking.

Andhra Bank Ltd fell more than 4 per cent and Oriental Bank of Commerce Ltd declined 2.9 per cent after eight straight sessions of gains.

The Nifty Pharma Index climbed as much as 2.7 per cent, with Dr. Reddy’s Laboratories Ltd leading the way after brokerage Morgan Stanley raised its rating and price target.

Matrimony.com Ltd declined as much as 8.7 per cent to Rs 899.30 on its trading debut, compared with the IPO issue price of Rs 985.

The Nifty FMCG index dropped as much as 1.1 per cent, with ITC Ltd declining up to 1.3 per cent after two consecutive sessions of gains.

(This article was published on September 21, 2017)

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