Sensex in red on global cues post US Fed's gloomy outlook

MUMBAI: The Indian stock market declined on Thursday morning tracking a fall in the Asian markets, after the US Federal Reserve projected that its benchmark interest rates will remain near zero throughout 2020, citing the severe impact of the pandemic. All major Asian indices are currently trading in the red.

Following Fed's statement on interest rates, the Dow Jones Industrial Average fell 282.31 points, or 1.04 per cent on Wednesday.

The Fed projected that interest rates will remain near zero through at least 2022 as policy makers strive to support the recovery of the economy from the COVID-19-induced recession.

Federal Reserve Chairman Jerome Powell said: "The extent of the downturn and the pace of recovery remain extraordinarily uncertain and will depend in large part on our success in containing the virus."

"A full recovery is unlikely to occur until people are confident that it is safe to re-engage in a broad range of activities," he added.

At 10.25 a.m., the BSE Sensex was trading at 34,116.26, lower by 130.79 points or 0.38 per cent from the previous close of 34,247.05.

It opened at 34,214.69 and has so far touched an intra-day high of 34,219.39 and a low of 34,010.86.

The Nifty50 on the National Stock Exchange was trading at 10,087.45, lower by 28.70 points or 0.28 per cent from its previous close.

US stocks ended mixed as Wall Street digested the Federal Reserve's latest statement on interest rates.

On Wednesday, the Dow Jones Industrial Average fell 282.31 points, or 1.04 per cent, to 26,989.99, following a 300-point drop in the prior session. The S&P 500 was down 17.04 points, or 0.53 per cent, to 3,190.14, Xinhua news agency reported.

The Nasdaq Composite, however, rallied to a fresh record, closing above the 10,000 mark for the first time, boosted by strong gains in tech shares. The index rose 0.67 per cent to end at 10,020.35.

Ten of the 11 primary S&P 500 sectors finished lower, with energy down 4.17 per cent, leading the decliners. Technology was up 1.11 per cent, the only gainer among the groups.

The US Federal Reserve on Wednesday kept its benchmark interest rate unchanged at the record-low level of near zero amid mounting fallout from the COVID-19-induced recession, and projected interest rates to remain at the current level through at least 2022. (IANS) 

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