Markets snap 4-session winning streak ahead of Fed outcome – FMCG, retail and telecom decline

• Indian benchmark indices Nifty50 and Sensex ended the day in red as traders waited anxiously for the US Fed rate outcome.
• On Wednesday, Sensex ended 215 points down at 60,906 while Nifty50 closed 62 points lower at 18,082.
• Analysts said traders preferred to book some profits in select counters to avoid being caught off guard ahead of the FOMC outcome.

After a tepid opening, Indian benchmark indices Nifty50 and Sensex ended the day in red, snapping a four-session winning streak ahead of Fed outcome. FMCG, retail and telecom sectors were amongst the top losers.

In the last four trading sessions, the markets have been closing in the green, and this week Sensex and Nifty hit the psychological levels of 61,000 and 18,000, respectively. Overall, Sensex added 1,364 points while Nifty50 gained 400 points in the last four trading sessions.

On Wednesday however Sensex ended 215 points down at 60,906 while Nifty50 closed 62 points lower at 18,082. The uneasiness in the Indian markets was on account of the Federal Open Market Committee (FOMC) meeting outcome, according to market analysts.

“Markets wavered in today’s trade as investors reassessed the outlook for US growth and waited anxiously for the FOMC meeting outcome,” said Prashant Tapse, research analyst at Mehta Equities.

The US Fed is expected to announce its fourth consecutive rate hike as it seeks to tame inflation which is still running hot at 8.2% in September, much higher than the Fed’s 2% target.

Other Asian markets, namely South Korea’s KOSPI, Hong Kong’s Hang Seng, and China’s Shanghai Composite, ended the day in green, with Shanghai Composite gaining the most at 1.15%.

FMCG, retail and telecom sectors were some of the major sectors ending the day in red. Bharti Airtel was the top loser with a decline of over 3%, days after it reported an 89% year-on-year increase in net profit to ₹2,145 crore and outlined its 5G-powered path to growth in the short-term.

In the earnings season so far, banks have been good performers, with FMCG and auto companies also delivering moderate growth.

Maruti Suzuki was amongst the top losers today despite reporting a 21% y-o-y rise in its October auto sales, in line with analyst estimates.

“Traders preferred to book some profit in selective counters to avoid being caught off guard on worries of a sharp correction worldwide in case the rate hike is above the expectation and the Fed maintains a hawkish stance,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

Foreign institutional investors (FIIs) purchased shares worth ₹1,436 crore, according to exchange data.


Source: NSE


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