Domestic stock markets started flat on Wednesday with a negative trend. He further extended his decline ahead of the minutes of the US Federal Reserve meeting, which could shed some light on the path of US central bank interest rate hikes in 2023. By noon, the Sensex was down 638.80 points, or 1.04 per cent, at 60,655.40, and smelly fell 191 points or 1.05 percent to 18,041.50 points.
In the broader markets, the BSE Midcap and Smallcap indices fell up to 1 per cent each. All the regions were also drowned in the Red Sea. Nifty Metal and Realty indices declined over 1 per cent each. At the same time, volatility remained high on the Street India The VIX rose 6 percent to 15.53.
Globally, investors are closely watching the minutes of the December meeting of the Federal Open Market Committee (FOMC) which will indicate signs of interest rate hikes in the new year. The minutes will be released later tonight. Apart from global trends, Indian investors will also be tracking corporate earnings to get a better understanding of the economy.
fomc minutes
At the conclusion of the FOMC’s December 13-14 meeting, the interest rate was raised by 50 basis points (bps) to a target range of 4.25 percent to 4.5 percent. While it was a step down from 75 bps, policy makers published new projections on higher inflation expectations.
Officials now see inflation ending 2023 at 3.1 percent, compared with 2.8 percent in the forecast for the previous quarter released in September.
we Share Market Start 2023 on a weak note
The US stock market closed in the red on Tuesday’s session. The Dow Jones Industrial Average (DJIA) fell 10.88 points, or 0.03 percent, to 33,136.37, while the tech-heavy Nasdaq Composite index fell 79.50 points, or 0.76 percent, to 10,386.98 and the S&P 500 lost 15.36 points, or 0.40 percent, to 3,824.14.
Six of the 11 major S&P sectors closed with losses, led by energy. The negative start came as a double whammy for Wall Street’s major averages after their worst year since 2008.
crude oil
Brent crude March futures fell 0.07 per cent to $82.04 a barrel and US West Texas Intermediate (WTI) crude futures declined 0.21 per cent to $76.77 a barrel.
2023 will be tougher than last year: IMF chief
International Monetary Fund chief Kristalina Georgieva has said that a third of the world could be in recession and that even countries that are not in recession will feel like a recession for millions of people.
“The year 2023 will be tougher than last year because the US, EU and China economies will slow down,” he said in an interview with CBS.
profit booking
“The market has been moving in a narrow range of 18,000-18,200 for the past few days. Siddharth Khemka, head of retail research at Motilal Oswal Financial Services, said buying was seen in some sectors like banks and metals which are witnessing profit-booking today.
Anand James – Chief Market Strategist at Geojit Financial Services said: “Though yesterday’s move lacked momentum to take us to our target of 18,400, the positive bias remains. The similar trend is expected to continue with 18,400 today. Alternative scenarios see consolidation inside the 18,250-150 zone, with a negative marker at 18,000, unless fears of a 17,500 dip remain.
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