The benchmark lending rate was raised to 4.40 per cent in the domestic equity markets on Wednesday following a surprise move by the RBI.
The benchmark lending rate was raised to 4.40 per cent in the domestic equity markets on Wednesday following a surprise move by the RBI.
Equity markets gave up early gains during the fag-end of trading on Thursday to settle on a flat note amid profit-taking.
The 30-share BSE benchmark Sensex had jumped 897.77 points or 1.61 per cent to 56,566.80 during the day. But it cut off most of the gains and closed only 33.20 points or 0.06 per cent higher at 55,702.23.
Similarly, the NSE Nifty closed at 16,682.65, up 5.05 points or 0.03 per cent.
Tech Mahindra, Infosys, HCL Technologies, Tata Steel, Wipro, ITC, HDFC, TCS, Kotak Mahindra Bank and ICICI Bank were among the major gainers from the Sensex pack.
In contrast, IndusInd Bank, Sun Pharma, Nestle, UltraTech Cement, Reliance Industries, PowerGrid, Bajaj Finserv and Titan were among the laggards.
Elsewhere in Asia, Hong Kong settled lower, while Shanghai was marginally higher. Markets in Japan and Korea remained closed for the holidays.
Exchanges in Europe were trading with gains in the afternoon session.
US stock exchanges rose in overnight trading on Wednesday.
The Federal Reserve on Wednesday intensified its fight against inflation by raising its benchmark short-term interest rate by half a percentage point.
US equities rallied after comments from the Federal Reserve suggested that the central bank is unlikely to consider a higher interest rate hike of 75 basis points in the coming months, recording the biggest one-day gain since 2020. Of.
“Moreover, the rate hike and balance sheet unwinding quantum was on the expected line without any negative surprises, which was already included in the market correction in the past few days. It was somewhat like a relief rally,” Mitul Shah, Head of Research said Reliance Securities.
In a surprise move by the RBI to control inflation, the domestic equity markets were down on Wednesday after raising the benchmark lending rate to 4.40 per cent.
The BSE benchmark was down 1,306.96 points or 2.29 per cent at 55,669.03 while the Nifty was down 391.50 points or 2.29 per cent at 16,677.60.
Meanwhile, international oil benchmark Brent crude rose 0.27 per cent to $110.4 per barrel.
Foreign institutional investors offloaded shares worth Rs 3,288.18 crore on Wednesday, according to stock exchange data.
“US markets closed higher yesterday (Wednesday) after the Fed announced a 50 bps interest rate hike. The 75 bps hike is not something the committee is actively considering,” Jerome Powell said. The statement led to a rally in the market,” said Mohit Nigam, Head – PMS, Hem Securities.