US Fed hint, global cues pull equity indices into red

Mumbai, Aug 20 (SocialNews.XYZ) The Indian equity market slipped into the red on Thursday on the back of negative global cues.

After a gap-down opening, the indices slipped after the US Federal Reserve hinted that it was "not immediately prepared to deploy further unconventional measures to shore up the economy".

Sector wise, the top gainers were BSE Power, Metal and Oil and Gas indices, whereas the top losers included BSE Telecom, Bankex and FMCG indices.

Globally, major Asian markets closed on a negative note.

Similarly, European indices like the FTSE, CAC and DAX ended lower.

The NSE Nifty50 closed at 11,312.20, down by 96.20 points, or 0.84 per cent, from its previous close.

The Sensex closed at 38,220.39, lower by 394.40 points, or 1.02 per cent, from the previous close of 38,614.79.

"Global stock markets were knocked on Thursday after the US Federal Reserve signalled it was not immediately prepared to deploy further unconventional measures to shore up the world's biggest economy," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Some more weakness in largecaps could be in the offing unless we see US markets closing in the positive."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian indices along with global markets traded in the red today, on the back of US Fed reserve's grim July meeting minutes."

"The Fed Reserve cast doubts on the nascent recovery of the labor market seen in the previous months and its sustainability. Markets, globally, were banking on expectations of steady recovery in the major economies and the consequent return to normalcy for businesses."

Source: IANS