Sensex down on Fed induced global weakness

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Mumbai, Dec 20 (IANS) In line with global markets, BSE Sensex and Nifty50 traded lower on Thursday after the US Federal Reserve raised its short-term interest rate.

Metal and telecom stocks witnessed selling pressure along with index pivotals finance and banking stocks.

At 2.07 p.m., the Sensex traded 151.95 points lower at 36,332.38 and the Nifty50 traded 51.60 points down at 10,915.70 from the previous close.

“Fed’s decision to increase the short-term interest rate and its indication for a milder path of future increase weakened the dollar which supported the domestic currency,” Anuj Gupta, Deputy Vice President – Research, Commodities and Forex, Angel Broking, told IANS.

The Indian rupee gained close to 40 paise after the Fed decision. It traded at Rs 70.09 against the US dollar after closing at 70.40 on Wednesday.

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Analysts said the rupee may soon breach the 70 a dollar mark.

–IANS

ravi/mr

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