The domestic markets opened flat on Thursday morning as investors were still in their wait-and-watch mode. At 9.19 am, BSE 30-share Sensex declined 79.17 points to 62,574.36 while broad-based Nifty also lost 27 points and was at 16,633.20 level. The majority of the key indices across the world’s stock exchanges were trading in the losses during morning trade.

The US Federal Reserve has hiked key interest rates by 50 bps and the US and European markets reacted to the announcement and ended with losses. India’s wholesale inflation based on the Wholesale Price Index for the month of November was at 5.85 per cent (provisional), against the previous month’s 8.39 per cent, official data showed on Wednesday.

In the last two consecutive months, India’s wholesale inflation is in the single-digit. Till September, for 18 months on the trot, India’s wholesale inflation was in double digits.

In Asian markets, Japan’s Nikkei, Hong Kong’s Hang Seng, China’s Shanghai were trading with losses on Thursday. In European markets, indices FTSE, Deutsche were trading in the red while CAC and Refinitiv were with gains. In American markets, reacting to the Federal Reserve’s rate hike, Dow Jones, Nasdaq, S&P and Refinitiv were all trading in the negative territory.

The rupee on Wednesday gained 15 paise to settle at 82.45 versus US dollar, as a positive trend in domestic equities and easing inflationary pressures strengthened investor sentiment. Besides, a weak greenback against its major rivals overseas and softening crude oil prices supported the domestic unit, forex traders said.

The annual rate of inflation based on the all-India Wholesale Index (WPI) number is 5.85 per cent (provisional) for the month of November 2022 over November 2021. WPI inflation rose by 8.39 per cent YoY in October 2022.

The equity benchmark indices advanced on Wednesday, tracking positive Asian stock markets. Asian stocks advanced after the latest US inflation showed that consumer prices rose less than expected in November, signalling that inflationary pressures could be starting to ease. Barring the Nifty FMCG index, all the sectoral indices on the NSE ended in the green on Wednesday. Realty, metal and IT shares topped the list of gainers.

The S&P BSE Sensex advanced 144.61 points or 0.23 per cent to 62,677.91. The Nifty 50 index added 52.30 points or 0.28 per cent to 18,660.30.

HG Infra Engineering rallied 6.74 per cent on Wednesday after the company announced that it has been declared as lowest bidder by the National Highway Authority of India for a road project in Haryana.

HDFC Bank rose 0.80 per cent on Wednesday. The private lender announced that it will acquire a 7.75 per cent stake in a fintech startup, Mintoak Innovations (Mintoak). Bank of Baroda fell 0.75 percent on Wednesday.

The US Federal Reserve’s rate hike will send out a signal and there is an anticipation that there will be a ripple effect on other central banks across the world. The Fed has raised interest rates by 50 basis points (bps) and projected at least an additional 75 bps of increases by the end of 2023.

The Federal Open Market Committee of the Federal Reserve said the new interest rates were approved unanimously. The central bank’s policy rate is now at a target of 4.25-4.50 per cent, the highest level in 15 years.