HDFC Bank, Reliance hammer down markets

Mumbai: Benchmark indices Sensex and Nifty tumbled more than one per cent on Wednesday due to selling in index heavyweights in tandem with weak global trends ahead of the US Federal Reserve’s interest rate decision. Falling for the second day running, the 30-share BSE Sensex tumbled 796 points or 1.18 per cent to settle at 66,800.84. During the day, it tanked 868.7 points or 1.28 per cent to 66,728.14.

The NSE Nifty declined 231.90 points or 1.15 per cent to end below the 20,000 mark at 19,901.40 points. “The domestic markets remained under pressure due to rising US bond yields and a stronger greenback. Concerns reigned over upcoming FED policy, interest rate trajectory and rising oil prices. Bank Nifty underperformed due to rising cost of funds and reduction in deposits leading to moderation in net yield,” said Vinod Nair, Head of Research at Geojit Financial Services. Foreign Institutional Investors (FIIs) offloaded equities worth Rs1,236.51 crore, according to exchange data.

In the broader market, the BSE smallcap gauge fell by 0.51 per cent and midcap index declined 0.33 per cent. Among the indices, financial services fell by 1.39 per cent, commodities dropped 1.39 per cent, metal (1.25 per cent), realty (1.20 per cent), bankex (1.05 per cent), telecommunication (0.95 per cent) and oil & gas (0.68 per cent). Utilities and power were the gainers. US bond yields surging to 16-year high levels and fears of high crude oil prices fueling commodity inflation also hit the investor sentiment, according to analysts.

Fresh foreign fund outflows and caution ahead of a host of interest rate decisions from global central banks also added to the overall bearish trend.