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Sensex drops over 100 pts, Nifty tests 10,050 ahead of Powell’s first Fed meet

Domestic stocks made a weak opening today because of caution ahead of the US Fed rate review meet.

Domestic stocks made a weak opening today because of caution ahead of the US Fed rate review meet.

At 09:19 am, the S&P BSE Sensex was trading 39 points lower at 32,883 while NSE Nifty slipped 18 points to 10,075.

US stocks witnessed massive selloff on Monday as a plunge in Facebook pressured the technology sector. The Nasdaq fall was worst since February 8.

Investors across the globe braced for new Federal Reserve Chairman Jerome Powell’s first policy meeting starting later in the day. There is a possibility that the central bank may hike policy rate and signal that three more are in store this year.

Taking cues from Wall Street, Asian shares too traded in the negative today.

Back home, private lenders Axis Bank and YES Bank fell up to 1.48 per cent. Bharti Airtel crashed 1.20 per cent. They were the top losers in the Sensex pack while Adani Ports and Infosys went up, rising up to 1.42 per cent.

Deepak Jasani, HDFC Securities, said, “The fact that we have broken below the 200 DMA and also below the recent low of 10,141 does not augur very well for the near term. Of course, 10,000 as a round figure could give some support on the downside, but a good level of support will come only between 9,600 and 9,700 over the next few weeks.”

State-owned lender Canara Bank dropped over 4 per cent in early session after the CBI filed charges on Monday against a former chairman of the bank and others in a loan default case. At the time of writing this report, the stock was down 4.12 per cent.

Metal stocks continued to bleed. The Nifty Metal index cracked 0.80 per cent at 3,538.15, with 10 out of 15 constituents in the red.

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