Likely US rate hike subdues markets; BSE Sensex down 72 points

Mumbai, Dec 7: Heightened prospects of a US rate hike, coupled with slow progress in the Indian Parliament in approving a key economic legislation, subdued Indian equity markets on Monday, leading to a barometer index provisionally closing 72 points in the red.

Initially, both the bellwether indices of the Indian equity markets opened higher in sync with their Asian peers which firmed up following Friday’s positive close for the US markets.

However, the initial gains were capped following a healthy growth in a key US data — the non-farm payroll figures which were released on Friday.

The data showed that the US economy created 211,000 jobs last month against expectations of 200,000.

The data assumes significances as it heightened the chances of a US rate hike slated for mid-December.

A US rate hike could potentially lead to a massive pullback of foreign funds from emerging economies like India.

During Monday’s trade, the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) shed 72 points or 0.28 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE), too, provisionally closed in the red. It was lower by 17 points or 0.22 percent at 7,765.05 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,746.03 points, provisionally closed at 25,565.98 points (at 3.30 p.m.), down 72.13 points or 0.28 percent from the previous day’s close at 25,638.11 points.

The Sensex touched a high of 25,785.53 points and a low of 25,477.69 points during the intra-day trade.  (IANS)