NEW DELHI: A hawkish stance by the US Federal Reserve where it clearly indicated raising benchmark interest rates next year as well to tackle rising inflation has triggered a sharp fall in the global equity market including India.
The Fed increased the rates by 50 basis points last week following which the European Central Bank and the Bank of England also announced a similar rate hike. Going ahead this week, market experts believe that India’s equity market will remain under pressure as there are no major events taking place this week and investors would like to book profits after a two-month-long rally. “Apart from the feeble global cues, continued profit taking in the banking index may result in further decline and Nifty could test the 18,000-18,100 zone soon. On the higher side, 18,500-18,750 would act as hurdles. "
"Since all the sectors are largely trading in tandem with the benchmark, participants should plan their exits in profitable trades and stay selective for fresh positions,” said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.
Markets shed over a per cent for the second consecutive week, tracking weak global cues. On Friday, the BSE Sensex finished at 61,337.81 lower by 461.22 points or 0.75%. The broader Nifty 50 ended at 18,269 below 145.90 points or 0.79%. In the week that ended on December 16, Sensex shed 1.4%, while Nifty 50 declined by over 1.2%.