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Sensex falls over 150 points, Nifty trading below 10,950 post Federal Reserve interest rate hike

BusinessToday.In     December 20, 2018

The Sensex and Nifty opened lower in trade today amid lower Asian markets tracking a slump in their US peers after Federal Reserve raised interest rates again.

The rate increase, to a range of 2.25 percent to 2.5 percent, was the Fed's fourth this year.

While the Sensex fell 166 points to 36,317, Nifty lost 56.95 points to 10,911. Top Sensex gainers were Asian Paints (1.10%), Sun Pharma (0.94%) and M&M (0.86%).

Also read: US Federal Reserve raises interest rates, signals more hikes ahead

Vedanta (2.25%), Bharti Airtel (1.37%) and NTPC (1.20%) were the top Sensex losers.

Top sectoral losers were metal stocks with the BSE metals index falling 1.28%, BSE bankex (0.38%) and BSE oil and gas index (0.62%). Bank Nifty lost 97 points to 27,200.

Meanwhile, the mid cap and small cap indices were trading 0.03% and 0.18% lower in early trade.

Market breadth was marginally positive with 687 stocks trading higher compared to 573 falling on the BSE.

On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1209.21 crore on Wednesday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 481.46 crore, provisional data available with BSE showed.

The rupee opened lower in trade today after the US Federal Reserve raised interest rates for the fourth time this year and ninth time in three years. The rate increase, to a range of 2.25 percent to 2.5 percent, was the Fed's fourth this year.

The rupee opened 28 paise lower at 70.68 to the dollar in trade today.

Global markets

US stocks gave up a big rally and took a dive in afternoon trading Wednesday after the Federal Reserve raised interest rates again and signaled it's likely to keep raising them next year. Its benchmark interest rate is at its highest point since 2008, which means higher borrowing costs for many consumers and businesses. The market finished at its lowest level since September 2017.

The Dow fell 1.5 percent to 23,323.66. The S&P 500 skidded 39.20 points, or 1.5 percent, to 2,506.96. It's tumbled 14.5 percent in the last three months, including a loss of 9.2 percent so far in December.

The Nasdaq composite gave up 147.08 points, or 2.2 percent, to 6,636.83. The Russell 2000 index, which has suffered broader declines than the rest of the market, fell 27.95 points, or 2 percent, to 1,349.23.

Japan's Nikkei 225 index fell 0.6 percent and while South Korea's Kospi rose 0.8 percent. Hong Kong's Hang Seng was 0.2 percent higher.

Edited by Aseem Thapliyal

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