Opening Bell: Nifty tests 17,000, Sensex shed nearly 1000 points as indices correct 1.5% on back of Fed meeting outcome

The Indian markets opened on a negative note on Thursday amid weak global cues as the Federal Reserve signaled an interest rate hike could be coming soon and Russia-Ukraine tension. The broader Nifty slipped below 17000 briefly and the Sensex shed nearly 1,000 points during opening trade on Thursday, a day after the market remained closed on Wednesday on account of Republic Day.  

The benchmark indices opened at 17,062 and 57,317.38 respectively as the indices went on to decline more than 1.50 per cent minutes into trading.  

"Globally markets are very volatile amid hawkish US Fed and rising geopolitical tension and Indian markets are also facing the same pressure due to heavy FIIs' selling. If we look at the Indian markets then there are lots of positive triggers that may help our market to outperform but we just need some calmness in global markets," said Parth Nyati, Founder, Tradingo. 

He said we might see a post budget rally in the market as it not going in the budget with any euphoria. Last three years' trend shows that the Market corrects ahead of budget then it witnesses post-budget rally, he observed. 

"Nifty is trying to find its feet near a strong support zone of 16850-16600 after a brutal fall. The market was looking much oversold as PCR slipped below the 0.7 mark and FIIs' long exposure in the index future dipped below 45% therefore a bounceback is due," he added 

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In the pre-open, the Sensex slumped over 500 points as indicated by SGX Nifty amid 26 shares declining and only four advancing on the 30-share index. On the Nifty50, 16 shares advanced while 34 declined in the pre-open. Earlier, the SGX Nifty hinted at negative opening for the domestic equity market as the futures index tanked 320.50 points or 1.86% down to 6,900.50 at 9.05 am, as the index slipped below crucial 7,000. 

On Thursday morning, Asian markets were trading lower in the morning trade after Fed hinted at rate hike around March. Major Asian market indices traded negative as Japanese Nikkei 225 declined over 2 per cent, Hang Seng Index at the Hong Kong Exchange traded lower by 1.50 per cent and Shanghai Composite was trading with loss of 0.30 per cent.  

Tracking the US Fed meeting, the Wall Street indices gave up gains to end negative on Wednesday. Dow Jones dropped 0.38%, S&P 500 declined 0.15% and Russell 2000 was down 1.38% in Wednesday's closing.