BSE Sensex and Nifty edged lower on Thursday amid caution ahead of the outcome of exit poll results of Bihar election. The Sensex fell over 100 points while Nifty slipped below 8,000.
1) Banking and healthcare stocks led a broad-based decline with Yes Bank, Sun Pharma and Axis Bank slipping 0.80 per cent to 1 per cent.
2) Select buying was seen in IT stocks with Tech Mahindra and Wipro edging higher as Cognizant Technology Solutions raised its full-year revenue forecast for the third time this year after posting its biggest jump in quarterly revenue in three years.
3) Power sector stocks however bucked the weak trend. The Cabinet is likely to take up today the issue of tackling Rs 4.3 lakh crore loans of power distribution companies to bring down their liabilities. NTPC, Adani Power and Reliance Power were up over 1 per cent.
4) Oil & gas heavyweights RIL and ONGC fell nearly 0.50 per cent after the US Fed chief hinted at the possibility of a rate hike next month. Metal stocks also came under pressure with Vedanta and Tata Steel falling nearly 1 per cent. Tata Steel reports earnings later in the day.
5) Federal Reserve chairperson Chair Janet Yellen on Wednesday pointed to a possible December interest rate "liftoff" but said rates would rise only slowly from then on to nurture the US economic recovery.
6) Analysts say that stocks and currencies of emerging markets could come under pressure if the Fed goes ahead with its rate hike in December.
7) However, in the near term, the outcome of the Bihar election would set the direction of Indian markets, say analysts. Nifty may slip to 7,850 if the outcome of Bihar assembly elections does not go in favour of the BJP, said market analyst Rajat Bose.
8) Foreign institutional investors (FIIs) have sold in four out of the previous seven sessions, depriving markets of momentum, after they had been heavy net buyers in October.
9) The rupee slipped to 65.67/dollar today after Fed chief's comments pushed the dollar higher against major global currencies. The rupee had closed at 65.48/dollar on Wednesday.
10) Asian shares were mixed today on Fed chief's comments on possible rate hike next month that drove Wall Street lower overnight.
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