Sensex Ends 22 Points Lower, Nifty Gains 53 Points as Fed Rate Hike Weighs

Benchmark equity indices ended largely flat on Thursday as investors remained cautious after the US Federal Reserve raised interest rates and signalled the possibility of further monetary tightening.

The 30-share BSE Sensex declined 21.86 points, or 0.03 per cent, to settle at 74,314.59. The index had gained 341.11 points, or 0.45 per cent, during the session to touch 74,677.56.

The NSE Nifty edged up 53 points, or 0.23 per cent, to close at 23,270.60.

Among Sensex constituents, HDFC Bank, Titan, ICICI Bank, State Bank of India, Bharti Airtel and Axis Bank were among the major laggards. Tata Steel, Bharat Electronics, InterGlobe Aviation, Eternal, Maruti and Asian Paints were among the gainers.

“Indian equities ended mixed on Thursday after a range-bound session,” said Hariselvan Radhakrishnan, Founder and CEO of HST Wealth. He noted that selective buying supported the Nifty, while weakness in private-sector banks and IT stocks restricted gains.

Market sentiment remained cautious following the US Fed’s 25-basis-point rate hike, which was accompanied by indications that another increase could come this year. The decision was largely anticipated and therefore did not trigger a major sell-off.

Radhakrishnan said the US 10-year Treasury yield remained near 5 per cent, while continued foreign selling also capped domestic gains.

Meanwhile, the ₹22,569-crore initial public offering of the National Stock Exchange of India (NSE) opened for subscription on Thursday. The issue had been subscribed 39 per cent on the first day of bidding at the time of the report.

In Asian markets, Japan’s Nikkei 225 ended higher, while South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng closed lower. European markets were trading higher.

Brent crude, the global oil benchmark, fell 1.61 per cent to USD 104.10 a barrel. Foreign Institutional Investors sold equities worth ₹2,032.61 crore on Wednesday, according to exchange data.