Liquidity Worries Haunt Stocks, Sensex, Nifty Stay Soft
- Author: Ismael Montgomery Sep 22, 2017,
Sep 22, 2017, 0:15
Indian shares may open a tad lower on Thursday after the U.S. Federal Reserve left interest rates unchanged as widely expected but signaled another rate hike probably at the December meeting.
The US Dow Jones Industrial Average ended 0.19 per cent higher in yesterday's trade. On the BSE, 1,554 shares declined and 1,002 shares advanced.
In the economic news, European Central Bank (ECB) in its economic bulletin released today, 21 September 2017 said that Eurozone economic growth is gaining momentum and the rapid fall in the unemployment rate is encouraging but inflation has yet to show convincing signs of a sustained upward trend, requiring continued stimulus.
Matrimony.com had a subdued listing today as the stock closed lower at Rs 901.20, down 8.5 percent from issue price of Rs 985 due to weak market condition. BSE small- and mid-cap indices dwarfed the benchmarks, rising to new highs with gains of 0.36 per cent and 0.13 per cent, respectively. "So, this can impact in the short-term but unlikely in the long-term, as seen by the appreciation of INR (Indian rupee) in spite of selling by FII", Nair added.
Foreign portfolio investors (FPIs) remained net sellers in the past several sessions, offloading equities worth Rs 1,185.40 crore.
Google Launches Digital Payments App
The app supports seven Indian languages, including Hindi, Tamil, Bengali, Gujarati, Telugu, Kannada, Marathi, apart from English. It is powered by Unified Payment Interface (UPI), a payments protocol built by government-backed organisation NPCI.
The rupee slumped to 64.84 as the dollar strengthened overseas following the outcome of the Fed meet.
The breakneck selloff escalated as trading progressed with the local unit hitting a fresh intra-day low of 64.84 in mid-afternoon deals.
Nasdaq closed in red, down by 0.08 per cent while FTSE 100 was also down 0.05 per cent at the closing on Wednesday.
Sector-wise, the S&P BSE metals consumer durables index dipped by 259.76 points, banking index by 208.79 points and automobile index by 115.69 points.
On the other hand, Coal India (0.94%), GAIL (India) (0.92%), ICICI Bank (0.67%), Larsen & Toubro (0.34%), Tata Consultancy Services (0.28%), and Oil & Natural Gas Corporation (0.27%) were the biggest losers in the Sensex. Among the sectoral indices, Nifty Pharma was the top gainer, up by 0.80 per cent. Dr. Reddy's, Sun Pharma, Cipla and Lupin were all among the stocks which made upward move in morning trade.