Market benchmarks halt 3-day rally; banking, financial stocks weigh

BSE Sensex and NSE Nifty buckled under selling pressure on June 15, 2023.

Equity benchmarks Sensex and Nifty buckled under selling pressure on Thursday (June 15) as investors pared exposure to banking, IT and finance stocks after three sessions of gains amid the U.S. Fed’s hawkish stance on interest rates.

A weak opening in European markets and the depreciating rupee also sapped risk appetite, traders said.

After rallying for the past three days, the 30-share BSE Sensex fell 310.88 points or 0.49% to settle at 62,917.63. During the day, it tumbled 357.43 points or 0.56% to 62,871.08.

The NSE Nifty declined 67.80 points or 0.36% to end at 18,688.10.

Wipro was the biggest loser in the Sensex pack, slipping nearly 2%, followed by IndusInd Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Infosys, Tata Consultancy Services, HDFC and Bajaj Finserv.

On the other hand, Nestle, Mahindra & Mahindra, ITC, HCL Technologies, Asian Paints and Maruti were among the gainers.

In Asian markets, Seoul and Tokyo ended lower, while Shanghai and Hong Kong settled in the green.

Equity markets in Europe were trading on a mixed note. The U.S. markets ended mixed in the overnight trade on Wednesday.

The U.S. Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month.

Global oil benchmark Brent crude climbed 0.97% to $73.91 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth ₹1,714.72 crore on Wednesday, according to exchange data.

The BSE benchmark had climbed 85.35 points or 0.14% to settle at 63,228.51 on Wednesday. The Nifty advanced 39.75 points or 0.21% to end at 18,755.90.