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Sensex declines 111 points as Fed, Bank of Japan verdicts loom
MUMBAI: Indian markets fell on Tuesday on cues that the US Federal Reserve might raise interest rates. If rates rise, foreign investors would pull out funds from
MUMBAI: Indian markets fell on Tuesday on cues that the US Federal Reserve might raise interest rates. If rates rise, foreign investors would pull out funds from emerging markets, including India. Caution ahead of a key policy meetings by the Japanese central bank also hit sentiment.
The BSE Sensex closed 111 points (0.4%) down at 28,523.20. The broader NSE Nifty settled 32.50 points, or 0.37%, down at 8,775.90.
“Weakness in global stocks hurt domestic sentiments, with Indian stock markets entering negative territory in the day. All eyes are now on central banks across the globe, as the US Federal Reserve mulls over interest rates and the Bank of Japan reviews its stimulus programme after it failed to reach its 2% inflation target,” said Shreyash Devalkar, fund manager with BNP Paribas Mutual Fund.
“Barring the metals index, all other sectoral indices on the NSE traded in the red, with auto and FMCG stocks experiencing heavy selling pressure,” he said.
Gainers on the BSE included ONGC that was up 1.4%, Tata Steel (1%) and Cipla (0.7%). The losers were led by Hero Motors that was down 2.4%, Adani Ports (2.1%) and Bajaj Auto (1.9%).
“Monetary policy decisions from the US Federal Reserve and the Bank of Japan are expected to drive investor sentiment this week,” said Abheek Barua, chief economist, HDFC Bank.
