The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) on Thursday closed 201.62 points, or 0.75 percent, down as traders remained cautious on the likelihood that the US Federal Reserve may raise interest rates by the year-end.The 30-scrip Sensex, which opened at 27,083.70 points, closed at 26,838.14 points after touching a high of 27,099.11 points and a low of 26,794.10 points during the day.The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed in the negative territory -- 59.45 points or 0.73 percent down at 8,111.75 points.“"The market continues to be cautious while consolidating further amidst the expiry volatility and Fed meet. The hawkish Fed stance is within expected lines highlighting the possibility of a rate hike in the near-term," Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services said.
"Markets continue to bleed on expiry day of October derivatives contracts. US Federal Reserve left the door open to an interest-rate hike later this calendar year as signalled in its meet last night (Wednesday night) and unlikely prospects of majority to NDA government in Bihar elections also weighed on the sentiment," Gaurav Jain, director, Hem Securities said.Foreign funds were net sellers of shares worth $99.66 million.In Thursday's trade, good buying was observed in consumer durables sector, while selling pressure was seen in power, banking and capital goods sectors.On the BSE, consumer durables index gained by 0.39 percent, while power index dropped by 1.11 percent, bankex fell by 1.10 percent and capital goods index slipped by 1.09 percent.The 100-scrip and 200-scrip indices were down by 0.71 percent and 0.66 percent, respectively. Mid-cap index ended lower by around 0.44 percent and small-cap stocks fell 0.42 percent.
The Sensex gainers were: Dr.Reddy's, up 2.59 percent at Rs.4214.05; Vedanta, up 1.71 percent at Rs.106.85; and Tata Motors, up 1.36 percent at Rs.391.25.The losers included: BHEL, down 4.38 percent at Rs.203.25; Axis Bank, down 2.81 percent at Rs.469.40; and Sun Pharma, down 2.36 percent at Rs.879.70.Among the Asian markets, Japan's Nikkei was higher by 0.17 percent and China's Shanghai Composite Index was up by 0.38 percent, while Hong Kong's Hang Seng was down by 0.60 percent.In Europe, London's FTSE 100 was down by 0.92 percent, France's CAC 40 was lower by 0.61 percent and Germany's DAX Index was down by 0.23 percent at the closing in the Indian markets.