Mumbai,(Aryavarth) Fears of foreign funds exiting India pulled India’s stock markets lower during per-noon trade session on Thursday.
Accordingly, the fears were triggered by US Fed statement on the eventual restart of liquidity tapering programme.
The development assumes significance as it can lead foreign capital away from EMs such as India.
On Thursday, the Fed’s statement sent shock waves in the Asian as well as domestic markets.
The US Federal Reserve has projected at least two interest rate hikes in 2023, a year earlier than forecasted in the March meeting.
Around 11.55 a.m., Sensex was trading at 52,363.92, lower by 138.06 points or 0.26 per cent from its previous close of 52,501.98 points.
It opened at 52,122.25 and has touched an intra-day high of 52,523.88 and a low of 52,099.72 points.
The Nifty on the National Stock Exchange was trading at 15,754.25, lower by 13.30 points or 0.084 per cent from its previous close.
“Indian markets open lower on Thursday due to weak Asian cues post US Feb statement on Wednesday night. However, they have recovered from a lower level as the impact of the US Fed statement could be limited on emerging markets including India,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“Select midcaps are back in favour as traders interest remains high.”
According to Gaurav Garg, Head of Research at CapitalVia Global Research: “In morning trades, Indian equity benchmarks remained in the red, reflecting losses in index heavyweights amid a mainly negative trend in global stocks.”
“Sentiment remained downbeat as the second Covid wave had a negative impact on bank deposits and currency holdings among the public, according to an RBI report, indicating a large outflow of funds for pandemic-related medical expenses.”