Mumbai 1st, September : The benchmark indices dropped sharply in the early morning trading on Thursday following a drop in American stocks in the past four days, as worries over the possibility of a new rate increase by the US Federal Reserve weighed on stocks.at 11.10 a.m., Sensex were trading at 431.12 points or 0.72 percent lower at 59,105.95 The Nifty was trading down 87.85 points or 0.49 percent at 17,671.45.
TCS, Infosys, Reliance Industries, Tech Mahindra, HCL Technologies were the major losers on the Sensex.
The equity markets in the US were off on Wednesday because of Ganesh Chaturthi , the festival of love.
“Domestic stocks are likely to fall in the early trading hours on Thursday as they track weakening in the Asian pack following the US markets overnight closed in a lower position.With the backdrop of the hawkish Fed rhetoric central banks around the world, with the exception of the People’s Bank of China, are following Powell’s hawkish stance, with the European Central Bank calling for a “significant rate increase in September.” Prashanth Tapse, Research Analyst, Senior Vice President (Research), Mehta Equities Ltd announced prior to the opening of the market.
US stocks dropped for the fourth consecutive day.with S&P500’s futures trading 0.70 percent lower at 3,928 levels on Thursday.
In the meantime, Asian shares traded mostly lower in the wake of the decline in US shares.
Japan’s Nikkei 225 index fell 1.5 percent in the trading session on Thursday morning to 27,673.14 while the S&P/ASX 200 in Australia fell 1.7 percent to 6,865.60.
South Korea’s Kospi decreased 1.7 percent to 2,429.75 and Hong Kong’s Hang Seng fell almost 0.8 percent to 19,799.92.
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