Markets tumbled amid caution ahead of FOMC’s minutes

by Ana Lopez

(From Trade Representative)
MUMBAI: With the negative signal from the US, the announcement of the minutes of the Federal Open Market Committee (FOMC), the market was hit by the jitters and stuck in a narrow range, and finally both the benchmarks slipped into the negative zone with a minor decline.
The Sensex was down 18.82 points or 0.03 percent at 60,672.72 points and the NSE Nifty index was down 17.90 points or less than 0.1 percent at 17,826.70 points. Strong US jobs data followed by strong retail sales data in the US also signaled that the US economy remained strong despite the high inflation rate. The market was cautious amid fears that the strength of the economy would prompt the Federal Reserve to adopt a tighter monetary policy. Top losers were Tata Motors, Sun Pharma, Wipro, TCS, Ultratech Cement, Tech Mahindra, Bajaj Finserv, HCL Technologies, Infosys and IndusInd Bank. Among the top gainers on the Sensex were NTPC, Powergrid, Reliance Industries, Tata Steel, HDFC and HDFC Bank.
Adani was also reported to have backed out of its bid to acquire PTC Inridya after DB Power. Oriflame, a leading company in the cosmetic and beauty industry, has launched Novage Prostheticals for skin care under product expansion in the premium cosmetic range, specifically targeting the professional segment. Shares of Minda Corporation plunged nine percent in three days after acquiring a stake in Precoal
have found SBI Mutual Fund is entering the capital market on 20th February with SBI Dividend Yield Fund. The new fund offer will close on March 6. The basic objective of the fund is to generate regular cash flow through the forest reserves in it.
These are open-ended equity schemes investing in a well-diversified portfolio of equity and equity-related instruments, primarily of dividend yielding companies. Nifty 500 is TRI.
In the Investors Meet held ahead of the Global Investors Summit 2023, the Andhra Pradesh government has assured Maharashtra investors of incentives including fastest single window clearance, coastline, ports, power supply, abundant land for development. Andhra Pradesh Minister for Industries, Infrastructure, Investment and Commerce, Information Technology, Handlooms and Textiles Gudiwada Amarnath said that currently, with the potential to create employment for 20,000 people, Rs. 89 major projects are under active implementation with a total investment of 2.2 lakh crore or $27.54 billion. SIDBI has said in its report that small industries are developing well due to ease of loans in the MSME sector. The session started well but due to the negative signal of the world market, the mind was shaken. Sentiment also soured as FIIs became net sellers due to fears of El Nino. In the last few sessions, the market was also supported by falling crude oil prices along with buying by FIIs. According to market veterans, the rangebound and consolidation trend is not yet over given the pressure at higher levels due to dovish comments from the Fed officials and rising US dollar index.
Last week, Fed Governor Christopher Waller said regarding inflation that the Fed needs to maintain its current action plan. It could be a long battle, with interest rates continuing to rise longer than some currently expect. But I will not hesitate to do whatever is necessary to get my job done.
Also, the second estimate of fourth quarter (2022) US GDP data due on Thursday will be a key factor. According to the first estimate, the US economy grew at an annual rate of 2.9 percent in the fourth quarter of 2022, up from 3.2 percent in the previous quarter. Locally, the Reserve Bank of India will also release the minutes of its February monetary policy meeting on Wednesday.

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