BSE Sensex falls over 150 pts but TCS and Infosys gain as US Fed starts tapering

Dec 19 2013, 12:59 IST
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BSE Sensex had gained 247.72 points in the previous session. BSE Sensex had gained 247.72 points in the previous session.
SummarySensex resumed higher at 20,959.80 and firmed up further to a high of 21,017.45.

The BSE Sensex falls after the US Federal Reserve announces the start of its tapering, raising some concerns about foreign investor sales. The BSE Sensex was down 0.73 percent and Nifty fell 0.79 percent at 11.53 am.

Overseas investors are net buyers of more than $18 billion so far this year, the biggest in emerging Asia, according to Deutsche Bank data earlier this month.

Interest-rate sensitive blue chips lead declines, reversing gains from Wednesday when the RBI unexpectedly kept interest rates on hold.

Analysts note the RBI could resume rate hikes if inflation spikes.

ICICI Bank falls 2.9 percent while Hero MotoCorp Ltd is down 1.3 percent.

Software service exporters gain as a strengthening dollar on the back of the Fed taper could weaken the rupee, improving margins from overseas.

Tata Consultancy Services (TCS) gains 1.9 percent while Infosys is up nearly 2 percent after earlier touching its record high at 3504.70 rupees.

BSE Sensex trims initial gains by 14 pts after US Fed announcement

(PTI) In a volatile market, the S&P BSE benchmark Sensex failed to maintain initial gains and was quoted lower by 140 points in late morning trade on fresh selling pressure, mainly in banking, refinery, power, capital goods and realty sectors on fears of a slowdown in foreign capital inflows.

The market sentiment was hit adversely following the Federal Open Market Committee (FOMC) after a two-day monetary policy yesterday, announced plans to cut its monthly bond purchases to $75 billion from $85 billion.

The Sensex resumed higher at 20,959.80 and firmed up further to a high of 21,017.45 on initial buying on the back of strong capital inflows from foreign funds.

However, it declined immediately to 20,646.03 before quoting at 20,719.20 at 1040hrs.

The NSE 50-share Nifty also moved down by 53.05 points or 0.85 pct to 6,164.10 at 1040hrs.

Major losers were Larsen (2.83 pct), Icici Bank (2.44 pct), Hero Motocorp (2.25 pct), ONGC (2.24 pct), Bharti Airtel (2.13 pct), HDFC (1.99 pct), BHEL (1.87 pct), Bajaj Auto (1.87 pct), SBI (1.84 pct) and RIL (1.22 pct).

Asian markets edged higher in their early trade after the US Federal Reserve expressed enough confidence in the US labour market to taper asset purchases while promising to hold interest rates close to zero in the world's biggest economy.

Key benchmark indices in Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose by 0.01 pct

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