PSU banks top losers as market cracks for a slowing global economy

MUMBAI: Domestic market declined on Thursday following a hawkish stance by the US Fed Chair and prolonged high interest rate trajectory, which is not positive for a slowing global economy, said Vinod Nair, Head of Research at Geojit Financial Services. While Nifty fell 159.05 points, or 0.90 per cent, to close at 19,742.35, Sensex plunged 570.60 points, or 0.85 per cent, to settle at 66,230.24.

PSU banks and mid and small-caps were the worst hit due to stretched valuations and concern over moderation in yields. Rising oil prices and erratic rainfall further led investors to stay cautious in the market, Nair said.

Most of the sectoral indices were in red while Nifty PSU Bank and Nifty Bank were the top losers, down by 2.28 per cent and 1.68 per cent, respectively, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

One of the reasons of pessimism in the market was US Federal Reserve’s decision to maintain its benchmark in-terest rate at its current level. The Fed hinted that there will likely be one more interest rate increase before the end of 2023, followed by fewer rate reductions in 2024.

Adani Ports, Tech Mahindra, Dr Reddy’s, Asian Paints, and Bharti Airtel were among the top gainers, while Mahindra and Mahindra, ICICI Bank, Cipla, State Bank of India, and IndusInd Bank were among the top losers, Vidwani said. (IANS)

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