Indian shares fell sharply on Wednesday, tracking weak global markets as investors awaited the Federal Reserve’s interest-rate decision later in the day for direction.
The U.S. central bank is expected to maintain current interest rates despite persistent inflation levels exceeding target range.
The Fed’s summary of economic projections and the updated quarterly rate projections — known as the dot plot —will have implications for global financial markets.
Heavy declines in shares of heavyweights such as HDFC Bank and Reliance Industries also weighed on the markets.
The benchmark S&P BSE Sensex plummeted 796 points, or 1.18 percent, to 66,800.84 while the broader NSE Nifty index settled 231.90 points, or 1.15 percent, lower at 19,901.40.
HDFC Bank tumbled 3.9 percent after several brokerages downgraded the stock’s rating and cut the price target, citing concerns about its asset quality and pressure on margins following its merger with HDFC.
Reliance Industries lost 2.3 percent after around 1.9 crore shares of the company, worth around Rs. 4,563 crores, changed hands in a block deal on the exchanges.
Among other prominent decliners, UltraTech Cement, BPCL and JSW Steel fell 2-3 percent.
PSU stocks outperformed, with ONGC, Coal India and Power Grid Corp rising 1-2 percent.
Sensex, Nifty Tumble Ahead Of Fed Decision; RIL And HDFC Bank Top Losers
2023-09-20 10:30:17
