Indian stock market saw a volatile session on Thursday, September 17, with benchmark indices giving up a major portion of their intraday gains as investors booked profits at higher levels. The Sensex moved sharply lower from the day's peak, while the Nifty managed to retain a modest gain by the closing bell.
The Sensex finished 21.86 points, or 0.03%, lower at 74,314.59. In contrast, the Nifty 50 ended 53 points, or 0.23%, higher at 23,270.60. Market breadth remained positive, with around 2,480 stocks advancing against 1,485 declines, while 143 shares closed unchanged.
Several factors influenced investor sentiment during the session, ranging from the US Federal Reserve's latest rate decision to technical resistance levels and competition for investor liquidity from the primary market.
Fed Rate Hike Raises Global Market Concerns
The US Federal Reserve's decision to raise interest rates by 25 basis points emerged as one of the key factors influencing global investor sentiment. The move marked the central bank's first rate increase in more than three years and was backed unanimously by policymakers.
The Fed's updated quarterly projections also pointed to the possibility of another rate increase before the end of the year, with as many as 16 of the 18 policymakers projecting at least one additional 25-basis-point hike.
Higher US interest rates can affect the relative attractiveness of emerging-market assets such as Indian equities. The prospect of tighter monetary conditions in the US can also weigh on sectors that are particularly dependent on American demand.
The IT index declined 0.7% during the session, as higher borrowing costs and tighter financial conditions could potentially affect corporate technology spending in the US - an important market for Indian IT companies.
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Profit Booking Caps Intraday Gains
After gaining at higher levels, stock market today faced selling pressure as investors chose to lock in profits. The Sensex fell around 390 points from its intraday high, while the Nifty hovered close to the 23,250 mark during the session.
The pullback indicates that investors remained cautious about chasing gains at elevated levels. Despite the volatility, the Nifty managed to finish in positive territory, while the Sensex ended marginally lower.
The mixed closing performance also came amid a broader focus on global interest-rate signals, domestic technical levels and upcoming primary-market activity.
