The S&P BSE Sensex opened on a subdued note as sentiment in global markets turned bearish after the US Federal Reserve said it would cut its monthly purchases of US Treasuries and mortgage-backed securities to $55 billion, from $65 billion.
The US Fed indicated that in determining how long to maintain the current 0-0.25 per cent target range for the federal funds rate, the Committee will assess progress - both realized and expected--toward its objectives of maximum employment and 2 per cent inflation.
"US market fell over half per cent and Asian markets are down by half to one per cent after US Fed officials predicted that their target interest rate will be 1 per cent at the end of 2015 and 2.25 per cent a year later, higher than previously forecast. US Bond yields spiked on the Fed news as well. Rate on the 10-year Treasury note rose to 2.77 per cent from 2.68 per cent," said Motilal OswalBSE 1.62 % note.
At 09:20 a.m.; the 30-share index was at 21,785.74, down 47.12 points or 0.22 per cent. It touched a high of 21,812.46 and a low of 21,746.42 in trade today.
The Nifty was at 6,502, down 22.05 points or 0.34 per cent. It touched a high of 6,516.70 and a low of 6,497.90 in trade today.
"This consolidation phase is happening after a sharp rally and it becomes very difficult to predict when it will get over. So it's advisable to avoid intraday trading and stick to the major trend which is bullish. As we have been mentioning in our previous reports, sooner or later we expect the index to move towards 6,600 - 6,630 levels. On the flip side, 6,440 - 6,400 would remain as a strong support zone for the index and any correction should be utilized to create long positions," said Angel Broking note.
The S&P BSE Midcap Index was up 0.08 per cent and the S&P BSE Smallcap Index was 0.19 per cent higher.
Among the sectoral indices, the S&P BSE Bankex was down 0.61 per cent, the S&P BSE Capital goods Index was down 0.48 per cent and the S&P BSE FMCG Index was 0.45 per cent lower.
The S&P BSE IT Index was up 0.34 per cent and the S&P BSE Metal Index was 0.32 per cent higher.
Axis BankBSE -1.62 % (1.33 per cent), L&T (0.73 per cent), Hero MotoCorpBSE -0.43 % (0.56 per cent), HDFCBSE -0.65 % (0.40 per cent) and ITCBSE -1.56 % (0.39 per cent) were among the index losers.
HULBSE 1.61 % (up 0.53 per cent), GAILBSE -2.11 % (up 0.51 per cent), Bharti AirtelBSE 1.04 % (up 0.37 per cent), Dr Reddy's Laboratories (up 0.32 per cent) and Tata SteelBSE -0.52 % (up 0.29 per cent) were among the index gainers.
The market breadth was negative on the BSE with 613 gainers against 462 losers.
The foreign institutional investors bought shares worth Rs 1,069.74 crore while domestic institutional investors were net sellers worth Rs 610.96 crore on Wednesday as per the provisional data from the National Stock Exchange.
The Dow Jones industrial average fell 114.02 points or 0.70 per cent, to end at 16,222.17. The S&P 500 slipped 11.48 points or 0.61 per cent, to finish at 1,860.77. The Nasdaq Composite dropped 25.711 points or 0.59 per cent, to close at 4,307.602.
The Asian markets declined after the US Fed comments on tapering. The Japan's Nikkei 225 index fell 1.47 per cent, Hong Kong's Hang Seng index was down 1.18 per cent, South Korea's Kospi index was 0.88 per cent lower and Taiwan Weighted declined 1.08 per cent.
The US Fed indicated that in determining how long to maintain the current 0-0.25 per cent target range for the federal funds rate, the Committee will assess progress - both realized and expected--toward its objectives of maximum employment and 2 per cent inflation.
"US market fell over half per cent and Asian markets are down by half to one per cent after US Fed officials predicted that their target interest rate will be 1 per cent at the end of 2015 and 2.25 per cent a year later, higher than previously forecast. US Bond yields spiked on the Fed news as well. Rate on the 10-year Treasury note rose to 2.77 per cent from 2.68 per cent," said Motilal OswalBSE 1.62 % note.
At 09:20 a.m.; the 30-share index was at 21,785.74, down 47.12 points or 0.22 per cent. It touched a high of 21,812.46 and a low of 21,746.42 in trade today.
The Nifty was at 6,502, down 22.05 points or 0.34 per cent. It touched a high of 6,516.70 and a low of 6,497.90 in trade today.
"This consolidation phase is happening after a sharp rally and it becomes very difficult to predict when it will get over. So it's advisable to avoid intraday trading and stick to the major trend which is bullish. As we have been mentioning in our previous reports, sooner or later we expect the index to move towards 6,600 - 6,630 levels. On the flip side, 6,440 - 6,400 would remain as a strong support zone for the index and any correction should be utilized to create long positions," said Angel Broking note.
The S&P BSE Midcap Index was up 0.08 per cent and the S&P BSE Smallcap Index was 0.19 per cent higher.
Among the sectoral indices, the S&P BSE Bankex was down 0.61 per cent, the S&P BSE Capital goods Index was down 0.48 per cent and the S&P BSE FMCG Index was 0.45 per cent lower.
The S&P BSE IT Index was up 0.34 per cent and the S&P BSE Metal Index was 0.32 per cent higher.
Axis BankBSE -1.62 % (1.33 per cent), L&T (0.73 per cent), Hero MotoCorpBSE -0.43 % (0.56 per cent), HDFCBSE -0.65 % (0.40 per cent) and ITCBSE -1.56 % (0.39 per cent) were among the index losers.
HULBSE 1.61 % (up 0.53 per cent), GAILBSE -2.11 % (up 0.51 per cent), Bharti AirtelBSE 1.04 % (up 0.37 per cent), Dr Reddy's Laboratories (up 0.32 per cent) and Tata SteelBSE -0.52 % (up 0.29 per cent) were among the index gainers.
The market breadth was negative on the BSE with 613 gainers against 462 losers.
The foreign institutional investors bought shares worth Rs 1,069.74 crore while domestic institutional investors were net sellers worth Rs 610.96 crore on Wednesday as per the provisional data from the National Stock Exchange.
The Dow Jones industrial average fell 114.02 points or 0.70 per cent, to end at 16,222.17. The S&P 500 slipped 11.48 points or 0.61 per cent, to finish at 1,860.77. The Nasdaq Composite dropped 25.711 points or 0.59 per cent, to close at 4,307.602.
The Asian markets declined after the US Fed comments on tapering. The Japan's Nikkei 225 index fell 1.47 per cent, Hong Kong's Hang Seng index was down 1.18 per cent, South Korea's Kospi index was 0.88 per cent lower and Taiwan Weighted declined 1.08 per cent.