Sensex, Nifty open flat over possibility of future US rate hikes

By Koustav Das: Benchmark stock market indices opened flat on Thursday as US Fed Chair Jerome Powell highlighted the possibility of future rate hikes in the world’s largest country in his congressional testimony.

The benchmark S&P BSE Sensex fell 0.10 per cent to 63,459.22 at 9:16 am, while the NSE Nifty 50 fell 0.07 per cent to 18,844. In the previous trading session, Sensex hit an all-time high, while Nifty registered a record closing.

Gains in the broader markets were mixed in early trade, with Nifty Midcap 100 down marginally, while Nifty Smallcap 100 gained. Volatility has also seen a mild rise, indicating that the session could face some selling pressure.

Among sectoral indices, Nifty Metal was the top gainer, followed by high-weightage indices Nifty Financial Services and Nifty Bank. Nifty Auto also gained in early trade.

The top five gainers on the Nifty 50 were Tata Steel, HDFC Life, ICICI Bank, M&M and Hindalco. On the other hand, the top losers were Power Grid Corporation, Infosys, Bajaj Finance, Tata Consumer Products and NTPC.

Om Mehra, research analyst at Choice, said, “Highest call side open interest is at 19,000 and highest put side open interest is at 18,800. Aggressive put writing and huge OI observed in the strike of 18,800 may provide support for Nifty in the 18,760-18,800 zone.”

“Overall performance from major sectors is holding the grip on a rotational basis. We expect benchmark Indices to test a new high this week,” he added.

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