Sensex, Nifty Drift Lower On Weak Global Cues

(RTTNews) - Indian stocks are down in negative territory in mid-morning trades on Thursday, extending early losses, tracking weak global cues.

After raising interest rate by 50 basis points, the Federal Reserve said on Wednesday that more increases are likely in the coming months. The central bank expects rates to ultimately be raised higher than forecast back in September. The median forecast suggests rates will be raised to a so-called terminal rate of 5.1% next year compared to the September projection of 4.6%.

The Fed expects inflation to remain elevated in 2023. It expects price growth to slow to 3.1% next year from 5.6% this year, but that is still up from the 2.8% forecast in September and well above the Fed's 2% target.

The benchmark BSE Sensex, which dropped to 62,322.94, is currently down 311.14 points or 0.5% at 62,366.77.

The broader Nifty index of the National Stock Exchange is down 88.10 points or 0.47% at 18,571.80.

Technology and metal stocks, which posted strong gains in the previous session, are among the notable losers this morning. PSU bank stocks are gaining in strength.

Tech Mahindra, Infosys, HCL Technologies, Titan Industries, JSW Steel, Hindlaco, Hind Unilever and Tata Consultancy Services are down 1 to 2%.

Tata Steel, Eicher Motors, UPL, Coal India, Dr Reddy's Laboratories, ITC and Nestle are also notably lower.

Tata Motors shares are up 1.1% after the company announced that it has signed a deal with Everest Fleet Pvt Ltd. to supply 5,000 units of XPRES-T EVs.

SBI Life is gaining more than 1.5%. HeroMocorp, Britannia Industries, Bajaj Finance, BPCL and HDFC Life are gaining 0.5 to 1%.

IRCTC shares are down more than 5%. The government announced that it will sell a 5% stake in IRCTC through an offer for sale at a floor price of Rs 680 a share to raise Rs 2,700 crore.

The market breadth is positive. Out of 3,471 stocks seen in action on BSE, 1,865 stocks are up in positive territory. 1,453 stocks are weak, and 153 stocks are hovering around their previous closing levels.