Indian Stock Market Opens Flat Ahead of US Federal Reserve’s Interest Rate Decision
Mumbai, Dec 18: The Indian stock market opened on a flat note on Wednesday as investors eagerly await the US Federal Reserve’s decision on interest rates. As of 9:33 AM, the Sensex was trading at 80,651.44, down by 33.01 points or 0.04%, while the Nifty stood at 24,328.75, declining by 7.25 points or 0.03%.
The market sentiment remained negative, with 882 stocks in the green and 1,306 stocks in the red on the National Stock Exchange (NSE). Investors are focused on the Fed’s interest rate decision, which is expected to include a 25 basis point rate cut, with particular attention on the accompanying commentary.
Experts note that a significant trend in the Indian market is the outperformance of the broader market, with good earnings being well-received, and there are no immediate concerns regarding Foreign Institutional Investor (FII) selling.
Sector-wise, Nifty Bank dropped 152.85 points or 0.29% to 52,681.95, while Nifty Midcap 100 fell 0.34% to 58,900.55, and the Nifty Smallcap 100 index dropped 0.27% to 19,346.40.
Among the Sensex stocks, Tata Motors, Power Grid, L&T, Maruti, ICICI Bank, IndusInd Bank, UltraTech Cement, SBI, and NTPC were the top losers. On the other hand, Sun Pharma, HCLTech, Tech Mahindra, TCS, ITC, Bharti Airtel, and M&M were the top gainers.
Asian markets showed mixed performance, with markets in China, Hong Kong, Seoul, and Jakarta trading in the green, while Japan and Bangkok experienced losses.
On the global front, the US stock markets ended lower in the previous trading session, with the Nasdaq Composite and S&P 500 declining by 0.32% and 0.39%, respectively. The Dow Jones Industrial Average dropped by 0.61%.
Foreign Institutional Investors (FIIs) sold equities worth Rs 6,409.86 crore in India on December 17, while Domestic Institutional Investors (DIIs) bought equities worth Rs 2,706.48 crore on the same day.
Market experts have pointed out that the near-term outlook has weakened, with FIIs turning into net sellers on rallies. The large sell-off by FIIs on December 17 suggests further selling could occur during market bounces.
