Markets Near Day’s Lows, Sensex Sheds Over 400 Points, Nifty Below 15,700 On Weak Global Cues

The benchmark indices are trading near the lows of the day, amid a largely negative trend in global markets, after the US Federal Reserve hinted that it may raise interest rates at a much faster pace than assumed. At 2:40 pm,the BSE Sensex was trading at 52,152.855, lower by 257.60 points or 0.6 per cent and the NSE Nifty was at 15,645.50, down 125 points or 0.8 per cent. Select metal, auto and private banking stocks are witnessing some selling, with the NSE metal and banking index losing more than 1 per cent each.

The Sensex fell as much as 402 points and Nifty 50 index fell below its important psychological level of 15,700.

US equities had ended lower overnight after the Fed indicated it might ease off the economic stimulus earlier than previously thought. The Fed suggested that it would raise their benchmark short-term rate, which influences many consumer and business loans, twice by late 2023. The previous estimate was that there would be no rate hike until 2024.

Meanwhile, foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 870.29 crore, as per provisional exchange data available with the stock exchanges.

Metals continued to be under pressure on June 17 as well, with the metal index shedding more than 4 percent in as many days as China promised to release reserves to ease shortfall fears.

On the stock-specific front, Adani Ports has extended the losses of the previous session, plunging 7 per cent to Rs 656.80 to top the loser’s list on the NSE. Tata Steeel, Hindalco, Maruti Suzuki, Hero Motocorp, ICICI Bank and HDFC Bank have lost 1-3 per cent each on the NSE.

On the other hand, cement and consumer goods stocks are bucking the weak trend on the NSE. Ultratech Cement, Shree Cement, Asian Paints and Tata Consumer Products have gained around 2 per cent each on the NSE.