Benchmark indices in India and across Asia were weak, following the US Federal Reserve indication to hike interest rates earlier than expected. While previously the Fed had estimated that no rate hike would occur before 2024, it now sees the possibility of two interest rate hikes by end of 2023. This indication sent commodity prices and stocks on a downward path, with markets across Asia following. Spot gold in the international markets fell by almost 2%.
The Sensex was trading with losses of 300 points, while the Nifty dipped 98 points in trade. CESC shares gained 4% after the company reported an over 13 per cent jump in its consolidated net profit to Rs 429 crore in the March 2021 quarter, mainly due to higher revenues. Welspun Enterprises shares dropped 4.2% after the company's consolidated net profit fell 54 per cent to Rs 40.94 crore during the quarter ended March 31.
Private sector Federal Bank saw its share price rally 1% after the bank said its board has approved issuing equity shares to World Bank arm International Finance Corporation and associates for over Rs 916.25 crore. Banking shares were seeing some selling pressure with the Bank Nifty down almost 1% in trade. Top losers in trade today were Adani Ports and Tata Steel. Meanwhile, most Asian markets were trading lower led by the Japanese Nikkei and the Hong Kong's Hang Sang.