Sensex, Nifty Open Lower On Hawkish Fed

(RTTNews) - Indian shares opened on a weak note Thursday after the U.S. Federal Reserve delivered a 25-bps rate cut as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation.

The benchmark S&P/BSE Sensex was down 923 points, or 1.2 percent, at 79,258 in early trade as the dollar and bond yields jumped after hawkish Fed rate cut. The broader NSE Nifty index was down 250 points, or 1 percent, at 23,947.

Selling was seen across the board, with Shriram Finance, Mahindra & Mahindra, Tata Steel, Asian Paints and Hindalco all falling around 2 percent.

IPCA Labs rose about 1 percent after promoter Usha M Chandurkar sold a 1.6 percent stake in the company.

IOL Chemicals and Pharmaceuticals jumped 5.3 percent on stock split news.

Vakrangee soared almost 7 percent after it signed a pact with Canara Bank to offer banking services through its Vakrangee Kendra networks.

Gulshan Polyols rallied 4 percent after it received a production-linked incentive (PLI) of Rs 2 per litre for bio-ethanol.

Indowind Energy advanced 1.7 percent after announcing a rights issue.