Sensex Dives 250 Points, Nifty Below 10,900 After Fed Decision

BSE Sensex traded 156.41 points, or 0.43%, down at 36,327.92. The Sensex opened at 36,321.18and hit a low of 36,213.73, down 270.6 points from its previous close. The Nifty 50 fell 49.15 points, or 0.45%, to 10,918.15. The 50-share index opened at 10,885.20, and hit a low of 10,880.05, down 87.25 points from yesterday’s close.

However, the BSE midcap and smallcap indices were up 0.07% and 0.25%, respectively. Sixteen out of 19 sectoral indices traded in negative territory dragged by metal, which was down over 1%. Power utilities, IT, teck and energy fell up to 0.9%. Healthcare, realty and consumer discretionary goods gained.

Asian stocks decline after Fed decision
Asian stocks dropped after Federal Reserve Chairman Jerome Powell failed to quell investor concerns that tightening policy will choke economic growth. Treasuries pared back some of Wednesday’s gains and U.S. stock futures ticked higher.

Equities fell from Tokyo to Hong Kong. Gains in U.S. stock futures come off the back of a tumultuous session for the S&P 500 Index, which turned an advance of as much as 1.5 percent into a loss of the same magnitude to end Wednesday’s session at a 15-month low.

The MSCI Asia Pacific Index lost 0.6 percent as of 9:35 a.m. in Hong Kong. Japan’s Topix index fell 0.6 percent. Shanghai Composite added 0.1 percent. Hang Seng index slid 0.1 percent. South Korea’s Kospi index dropped 0.4 percent. S&P 500 futures rose 0.4 percent. The S&P 500 fell 1.5 percent at the close in New York.

Rupee edges lower against dollar
The rupee weakened marginally against dollar, tracking losses in its Asian currencies after the US Fed raised interest rates, but was not as dovish in its outlook for 2019 as some traders had anticipated. At 9.15am, the rupee was trading at 70.54 a dollar, down 0.19% from its previous close of 70.40. The currency opened at 70.66 and touched a high and a low of 70.53 and 70.68 respectively.

The government 10-year bond yield was at 7.24% from its Wednesday’s close of 7.22%. So far this year, the rupee has declined 9%, while foreign investors have sold $4.44 billion and $7.34 billion in the equity and debt markets, respectively.

Religare Enterprieses shares gain over 2%
Shares of Religare Enterprieses Ltd rose as much as 2.03% to Rs 32.70 after the company said its subsidiary filed a criminal complaint against the Singh brothers, former promoters of the parent, and their associates for allegedly siphoning and misappropriating Rs 740 crore.

Metal stocks trade lower as global prices sink
The shares of metal companies fell as Most dollar-denominated metals, including copper, traded lower after the United States said it would withdraw sanctions on Russian aluminium producer United Company Rusal. Nalco fell 4%, Hindalco Industries Ltd 2.3%, Vedanta Ltd 2.2%, Jindal Steel & Power Ltd 1.5%, NMDC 1.3%, SAIL 1.2%, JSW Steel 1%, Coal India 0.8%.

Oil prices fell to erase most of their gains from the day before, resuming declines seen earlier in the week amid worries about oversupply and the outlook for the global economy.

The front-month U.S. crude contract had fallen 78 cents, or 1.6%, to $47.39 yuan per barrel, nearly offseting gains of 96 cents chalked up on Wednesday. International benchmark Brent crude futures were down 66 cents, or 1.2%, at $56.58 per barrel, after climbing almost 2% the session before.

Gold steadied, after declining about half a percent in the previous session as the US Federal Reserve did not deliver as dovish a statement as some investors had expected. Spot gold was up 0.1% at $1,244.41 per ounce. Prices slipped about 0.5% on Wednesday, in their sharpest decline since Nov. 27. US gold futures declined 0.7% to $1,247.4 per ounce.