Sensex, Nifty open marginally higher
New Delhi, September 18: Indian benchmark indices were trading marginally higher in early trade on Thursday, supported by a slight easing in crude oil prices. However, caution remained after the US Federal Reserve raised interest rates and indicated further tightening.
The BSE Sensex gained 86.49 points to 74,422.94, while the NSE Nifty rose 50.1 points to 23,267.70.
Among Sensex stocks, Eternal, Bajaj Finance, Bharat Electronics, Mahindra & Mahindra, Bajaj Finserv and InterGlobe Aviation were among the gainers. HCL Tech, HDFC Bank, TCS, Infosys and Tech Mahindra traded lower.
Fed rate hike keeps investors cautious
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said the decline in Brent crude to around USD 104.7 a barrel offered some relief, but the Fed’s rate decision and further tightening signals could keep markets volatile. The US Federal Reserve raised its policy rate by 25 basis points to 3.75–4 per cent, with another hike projected this year, according to the statement cited in the report. Higher US interest rates could strengthen the dollar, put pressure on the rupee and affect foreign investment flows into emerging markets, Radhakrishnan said. Brent crude was trading 0.12 per cent lower at USD 105.7 per barrel.
NSE IPO opens for subscription
The much-awaited National Stock Exchange (NSE) IPO, valued at Rs 22,569 crore, opened for subscription on Thursday, putting the issue in focus for investors. In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 were trading higher, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng were in negative territory. Foreign Institutional Investors sold equities worth Rs 2,032.61 crore on Wednesday, according to exchange data. The Sensex had gained 332.63 points, or 0.45 per cent, on Wednesday to close at 74,336.45, while the Nifty rose 99 points, or 0.43 per cent, to settle at 23,217.60.
