After surging by nearly one per cent in the opening trade, the Indian market erased all gains to slip in the red. Benchmarks Nifty50 and Sensex dropped around one and half per cent as the former traded near 15,400-mark, while the latter declined over 800 points to slip near 51,700.  

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The sharp reversal comes amid profit booking and fears of inflation. This comes amid Fed meeting outcome, in which US Federal Reserve on Wednesday hiked the interest rate by 75 basis points. This hike was largely expected and said to be factored in by the market already.  

More than the 75bp hike in Fed funds rate, which was expected, it was the Fed chief comments and guidance that have calmed the markets, temporarily, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services had said reacting to the Fed interest rate hike.  

Jay Powel's remark that we have the tools and resolve to achieve price stability reflects confidence in containing inflation, he said 

"His guidance of 3.4 percent rate by end of 2022 and 3.8 percent terminal rate in 2023 refect the determination to fight inflation. However, the presently unknown factor is whether the rising rates will tip the US economy into recession," the expert added.  

Meanwhile, underperforming benchmarks, Nifty midcap and small cap declined by more than 1.5% and 2.5% respectively in the afternoon trade.  

Sectorally, Nifty Metal, which was the worst hit among sectoral indices, declined more than three and half per cent. Bank, Realty and Energy were others that dragged the market as all indices sat deep in the red on Thursday.  

Britannia, Nestle India and Maruti were among a few gainers in an otherwise weak market. Wipro, ONGC, Shipla, Bharti Airtel, Tata Steel, Tech Mahindra, Kotak Bank, IndusInd Bank were te top laggards.