Sensex, Nifty reverse gains; Rupee at 10-week low as US Fed signals rate hike
In pre-market opening, the 31-scrip index was trading lower at 32,406-level and that of 51-scrip index was below 10,140-mark.
Indian markets reversed their early gains and were trading negative with Sensex sliding more than 220 points.
At 1034 hours, Sensex was trading at 32,260.91 below 139.60 points or 0.43%, while Nifty 50 tumbled over 53 points or 0.52% trading at 10,088.15.
In first half an hour of Thursday's trading session, Sensex was at 32461.93 higher by 61 points or 0.18%, while the Nifty 50 was above 17 points or 0.17% at 10158.45.
In pre-market opening, the 31-scrip index was trading lower at 32,406-level and that of 51-scrip index was below 10,140-mark.
Among gainers on BSE Dr Reddy's Laboratories took lead by trading at Rs 2378.55 per piece above Rs 78 or 3.37% as rating-agency Morgan Stanley raises the company's stock to overweight.
Other gainers were Cipla at Rs 577 per piece (1.50%), Sun Pharma at Rs 512.75 per piece (1.24%), Lupin at Rs 1012.75 per piece (1.05%) and Tata Steel at Rs 691.40 per piece (0.55%).
Losers involved Bharti Airtel (Rs 394 per piece), Coal India (Rs 254.95 per piece), ICICI Bank (Rs 289.40 per piece), Power Grid (Rs 211.95 per piece), ONGC (Rs 166.90 per piece) and HDFC Bank (Rs 1846 per piece) trading negative in the range of 0.10% - 0.70%.
Analysts at Motilal Oswal said, "Sectors like Pharma, software,oil and gas, banks and financials could continueto see investment interest."
However, Indian Rupee fell to 10-week low as hawkish comments from the Federal Reserve on Wednesday bolstered the dollar and spurred declines in emerging-market assets, reported in Bloomberg.
The rupee was trading at 64.480 down 0.095 paisa or 0.15% against the US benchmark dollar index.
US Federal Reserave meet on Wednesday were on expected lines - interest rates were kept unchanged but possibility of one rate hike by December end remains. Also, Fed has given timeline for balance sheet shrinkage beginning with $10 billion from October.
Motilal said, "Given that the balance sheet shrinkage will happen gradually, markets should view it positively."
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