Domestic stock markets started Thursday’s session on a lower note, despite a positive trend in global markets after the US central bank hinted at a reduction in interest rates going forward.
The S&P BSE Sensex index fell as much as 178.96 points to 38,933.78 in early deals, and the NSE Nifty benchmark moved to 11,635.15, down 56.3 points from the previous close. Selling across most sectors led by information technology shares dragged the markets lower.
Here are 10 things to know:
- At 9:18 am, the Sensex traded 109.79 points – or 0.28 per cent – lower at 39,002.95, while the Nifty was down 34.05 points – or 0.29 per cent – at 11,657.40.
- Top laggards on the 50-scrip index at the time were Wipro, UPL, Adani Ports, Yes Bank, Tech Mahindra, TCS and Infosys, trading between 1.34 per cent and 3.45 per cent lower.
- TCS, Infosys, HDFC Bank weighed the most on Sensex.
- The Nifty IT index – a sectoral index on the NSE comprising IT shares – fell as much as 1.77 per cent in morning deals.
- The Sensex had ended 0.17 per cent higher and the Nifty finished flat on Wednesday after a volatile session.
- A gauge of global stock markets rose on Thursday after the Federal Reserve signalled possible interest rate cuts later this year. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent while Japan’s Nikkei gained 0.6 per cent.
- The US Federal Reserve on Wednesday signalled interest rate cuts beginning as early as July, saying it is ready to battle growing global and domestic economic risks as it took stock of rising trade tensions and growing concerns about weak inflation.
- The MSCI ACWI, which incorporates readings of 49 equity markets across the world, gained 0.3 per cent. The index has recovered a large part of its 6.7 per cent losses made after US President Donald Trump threatened new tariffs on all of China’s imports last month.
- Signs that China and the United States are returning to the negotiating table after a six-week hiatus also bolstered risk sentiment.
- On Wall Street, the S&P 500 gained 0.3 per cent to 2,926, just 19 points off its record closing high hit on April 30.