Stock markets close flat after US Fed rate hike; NSE IPO in focus

Mumbai, Sep 17 (PTI) Benchmark indices Sensex and Nifty closed nearly flat on Thursday as caution prevailed after the US Federal Reserve increased its interest rates and indicated further tightening in monetary policy.

Giving up intraday gains, the 30-share BSE Sensex dipped 21.86 points, or 0.03 per cent, to settle at 74,314.59. During the day, it climbed 341.11 points, or 0.45 per cent, to 74,677.56.

The 50-share NSE Nifty closed marginally up 53 points, or 0.23 per cent, at 23,270.60.

Among the 30 Sensex firms, HDFC Bank, Titan, ICICI Bank, State Bank of India, Bharti Airtel and Axis Bank were the major laggards.

Tata Steel, Bharat Electronics, InterGlobe Aviation, Eternal, Maruti and Asian Paints were among the gainers.

“Indian equities ended mixed on Thursday after a range-bound session. The Nifty edged up to 23,270, while the Sensex slipped marginally to 74,314 and Bank Nifty declined to 56,055. Selective buying supported the Nifty, but weakness in private-sector banks and IT stocks limited the broader recovery,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm.

Market sentiment remained cautious after the US Federal Reserve raised interest rates by 25 basis points and signalled that another increase could follow this year.

“As the decision was largely anticipated, it failed to trigger a major sell-off. However, the US 10-year Treasury yield was near 5 per cent and continued foreign selling capped domestic gains,” Radhakrishnan added.

Brent crude, the global oil benchmark, declined 1.61 per cent to USD 104.1 per barrel.

The mega Rs 22,569-crore initial public offering of the National Stock Exchange of India (NSE) opened for subscription on Thursday, with the issue getting subscribed 39 per cent so far on the first day of bidding.

In Asian markets, Japan’s Nikkei 225 index ended in positive territory, while South Korea’s Kospi, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.

Markets in Europe were trading higher. US markets ended lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,032.61 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex climbed 332.63 points, or 0.45 per cent, to settle at 74,336.45. The Nifty was up 99 points, or 0.43 per cent, to end at 23,217.60.