Stock Markets on Thursday opened with marginal losses after posting four sessions of gains. In the early trade, investors took the cues from positive impact of sharply lower crude oil prices and easing US, Iran tensions against a more hawkish signal from the US Federal Reserve.
At 9:20 AM, Sensex was at 77,117.44 down by 38.18 points or 0.05% while Nifty was at 24,073.80, down by 1.90 points or 0.01%.
Asian stocks were steady and oil prices dipped. Markets opened mixed with a positive bias, while US equity futures recovered part of their losses after the hawkish FOMC outcome.
GIFT Nifty was trading at 24,055 down 45 points or 0.2 percent from the previous Nifty futures close.
Crude Oil Prices continue to record decline as brent crude futures were down 89 cents, or 1.12%, at $78.66 a barrel, and U.S. West Texas Intermediate fell 98 cents, or 1.28%, to $75.81 a barrel.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said, “The hawkish message sent by the new chief of the Fed, Kevin Warsh, was a bit unexpected since Warsh has been in favour of rate cuts and that was what President Trump wanted. But the persistently high inflation in the US left the FOMC with no choice but to send a hawkish message. The dot plot indicates rate hike, possibly in October. The US 10-year bond yield rose to 4.46% leading to a sell-off in the US markets towards the close.”
“Indian market will not be unduly influenced by the developments on the Fed rate front. In the near term the market will remain resilient supported by the crash in Brent crude to around $ 78 levels. Rupee is stable at around 94.52 level. FII selling has tapered off as expected and yesterday FIIs turned buyers, though in limited quantity. Brent crude prices at around $78 level and stability in the rupee are big positives from the market perspective. Bank Nifty will remain strong with upward bias.”