Image Source : PTI Markets erase gains after initial euphoria to end flat; Nifty ends below 16,700 Equity markets gave up early gains during the fag-end of trade on Thursday to settle on a flat note amid profit-taking. The 30-share BSE benchmark Sensex had jumped 897.77 points or 1.61 per cent to 56,566.80 during the day. But it pared most of the gains and closed just 33.20 points or 0.06 per cent higher at 55,702.23. Similarly, the NSE Nifty inched up 5.05 points or 0.03 per cent to 16,682.65. From the Sensex pack, Tech Mahindra, Infosys, HCL Technologies, Tata Steel, Wipro, ITC, HDFC, TCS, Kotak Mahindra Bank and ICICI Bank were among the major gainers. In contrast, IndusInd Bank, Sun Pharma, Nestle, UltraTech Cement, Reliance Industries, PowerGrid, Bajaj Finserv and Titan were among the laggards. Elsewhere in Asia, Hong Kong settled lower, while Shanghai was marginally higher. Markets in Japan and Korea were closed for holidays. Exchanges in Europe were trading with gains in the afternoon session. Stock exchanges in the US surged higher in the overnight trade on Wednesday. The Federal Reserve intensified its fight against the worst inflation in 40 years by raising its benchmark short-term interest rate by a half-percentage point on Wednesday. “US equities rallied, recording the biggest one-day gain since 2020, after Federal Reserve comments suggested that the central bank is unlikely to consider a higher interest-rate hike of 75 basis points in the coming months. Moreover, rate hike and balance sheet unwinding quantum was on expected line without any negative surprise, which was already factored in market correction over past few days. It was like a relief rally to some extent,” said Mitul Shah, Head of Research at Reliance Securities. Domestic equity markets had plunged on Wednesday after the RBI in a surprise move hiked the benchmark lending rate to 4.40 per cent to contain inflation. The BSE benchmark had tumbled 1,306.96 points or 2.29 per cent to 55,669.03 while the Nifty tanked 391.50 points or 2.29 per cent to 16,677.60. Meanwhile, international oil benchmark Brent crude gained 0.27 per cent to USD 110.4 per barrel. Foreign institutional investors offloaded shares worth Rs 3,288.18 crore on Wednesday, according to stock exchange data. “US markets closed higher yesterday (Wednesday) after the Fed announced interest rate hike of 50 bps. Jerome Powell said 75 bps hike is not something that the committee is actively considering. This statement led to market rally,” said Mohit Nigam, Head – PMS, Hem Securities. Latest Business News
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