Stock Market Updates: Sensex Extends Losses, Down 500 pts; Nifty Below 18,550

Sensex Today: Indian indices opened lower on December 15 with Nifty around 18600 on the back of weak global cues. Frontline indices Nifty50 declined over 10 points to trade below 18,650 levels, whereas the S&P BSE Sensex dropped over 150 points to trade at 62,515 levels.

Broader markets, however, outperformed benchmark indices Nifty MidCap 100 and Nifty SmallCap 100 indices gained up to 0.1 per cent.

Sectorally, Nifty Pharma, Nifty PSU Bank, and Nifty Realty indices started trade with marginal gains – up to 0.5 per cent. On the flipside, Nifty Bank, Nifty IT, and Nifty FMCG indices remained bogged down in trade.

Among individual stocks, shares of IDBI Bank gained over 2 per cent after the government extended deadline for bidders to submit EoIs to January 7, 2023.

Besides, shares of Gulshan Polyols soared over 11 per cent after it bagged Rs 137 crore order to supply over 22,000 kilolitres of ethanol across oil marketing companies.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Even though the Fed downshifted the rate hike to 50 bp as expected, the tone of the commentary was unexpectedly hawkish. The FOMC statement, “the ongoing hikes will be appropriate to reach a sufficiently restrictive stance that returns inflation to 2% over time” is hawkish but the market seems to ignore this expecting inflation to cool down earlier than Fed’s expectations. Globally, equity markets would be watching out for the ECB and BoE decisions today, which are also likely to be 50 bp hikes. The Indian market, though not completely decoupled from the mother market US, has been charting a slightly different path exhibiting surprising resilience even in the face of global weakness. This is due to India’s superior growth and earnings prospects, going forward. However, high valuations and rising interest rates are likely to restrain the ongoing rally. Fixed income assets are becoming attractive.”

Global Cues

Globally, the US equities reacted negatively to the US Fed’s rate action as Dow Jones declined over 100 points to 0.4 per cent. NASDAQ Composite and the S&P 500, meanwhile, lowered to 0.7 per cent and 0.6 per cent, respectively.

Asia-Pacific markets, too, fell in tandem with Nikkei 225, Hang Seng, the S&P 200, and Kospi indices slipping up to 2 per cent.

In the commodities market, prices of Brent Crude slipped 0.7 per cent to $82 per barrel and WTI Crude hovered around $76 per barrel, down 0.8 per cent.

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