Weak global cues snap 2-day recovery

Mumbai: Equity indices snapped their two-day rising streak on Wednesday amid mixed global market trends ahead of the keenly awaited US Fed interest rate decision. The 30-share BSE Sensex fell 262.96 points or 0.44 per cent to settle at 59,456.78. During the day, it tanked 444.34 points or 0.74 per cent to 59,275.40. The NSE Nifty went lower by 97.90 points or 0.55 per cent to end at 17,718.35.

"Markets across the globe were trading with considerable volatility ahead of the Fed policy announcement. A 75 bps hike by Fed was factored in by the markets, while reports of mobilising Russian forces in Ukraine has escalated geo-political tension and fears of rising inflation. Any military escalation will have a significant effect on the world and domestic economy. This will have an influence on the near-term trend of the global market and implications on local market can be high as it is trading at premium prices compared to the world," said Vinod Nair, head (research) at Geojit Financial Services.

Ajit Mishra, V-P (research), Religare Broking Ltd, adds: "Markets will first react to the Fed meet outcome in early trades on Thursday. Besides, the scheduled weekly expiry would add to the volatility. Amid all, indications are in the favour of further consolidation so we suggest traders to stay light and focus more on the risk management part."