Sensex, Nifty50 end flat ahead of US Fed policy meet this week

• The 30-scrip Sensex ended 51 points lower at 62,130 while the 50-stock Nifty50 closed almost unchanged at 18,497.
• Markets were cautious ahead of November’s retail inflation data to be released later in the day.
• Global markets were in the red as investors await US and European central banks’ monetary policy decisions to be announced this week.
• The IT and pharma index were the only two losers with a decline of 0.40% and 0.13%.
  

Indian benchmark indices on Monday ended flat amid negative cues from global markets ahead of the US Federal Reserve policy meeting this week. Also, caution prevailed as the markets awaited India’s November retail inflation data to be released later in the day.

The 30-scrip Sensex ended 51 points lower at 62,130 while the 50-stock Nifty50 closed almost unchanged at 18,497.

“Indian benchmark Indices ended near the previous close in the volatile session. Nifty opened nearly 100 points lower on the back of weak global cues. However, it managed to stage a handsome recovery of more than 150 points to end the day near the previous close. Investors are cautious ahead of the US Fed's last meeting of 2022 scheduled this week,” said Devarsh Vakil, deputy head of retail research at HDFC Securities.

The Nifty IT and pharma indices were the only two losers with declines of 0.40% and 0.13% respectively.

“Before the CPI data, Indian markets have seen a consolidation. Bank Nifty also consolidated before the event. The Indian market closed flat to the previous day’s closing. Indications are in the favour of prevailing consolidation to continue and sustainability above 18,300 in Nifty is critical to maintaining the positive tone,” said analysts at Choice Broking.

Global markets bleed ahead of rate hike decisions
Asian markets have been under pressure ahead of the monetary policy decisions of the US and European central banks to be announced this week.

All Asian markets were in the red with Hong Kong’s Hang Seng falling the most at 2.2%, followed by China’s Shanghai SE Composite, which was down 0.87%. Taiwan SE Weighted Index was down 0.63% and Nikkei 225 ended lower by 0.21%.

In the US, the S&P 500 ended 0.73% lower on Friday, and the tech-heavy Nasdaq too closed 0.7% lower. The Dow Jones Industrial Average fell 0.9%.

Last week, the Reserve Bank of India announced a 35-basis point rate hike in line with expectations, but analysts suggest that RBI governor Shaktikanta Das’ commentary indicates another rate hike is on the cards. All eyes are now on inflation data as this will be a gauge to the central bank’s future course of action, analysts said.

On the BSE, 1,815 stocks rose while 1,773 stocks ended in the red on Monday.

On the Nifty50, BPCL, Divi’s Laboratories, Coal India were biggest gainers while Asian Paints, Infosys, Kotak Mahindra Bank and Titan were top losers.

Brent crude oil prices fell below $80 per barrel to end at $75.39 on fears a global recession would sharply affect demand.

On Monday foreign institutional investors (FII) sold equities worth ₹138 crore while and domestic institutional investors (DII) data bought ₹695 crore.


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