On Thursday, the benchmark BSE Sensex fell the most in a week after the US Federal Reserve said it would cut monthly bond purchases by $10 billion from January. Photo: Bloomberg
Mumbai: Wall Street indices ended marginally lower as investors digested the US Federal Reserve’s decision to start withdrawing its economic stimulus measures while keeping interest rates close to zero until the jobless rate dropped below 6.5%, reports Financial Times. The S&P 500 and the Dow Jones Industrial Average closed flat, and Nasdaq Composite was down 0.3%.
Asian markets were trading on a mixed note ahead of Bank of Japan’s (BoJ) policy meeting outcome. The vast majority of economists expect the BoJ to keep policy on hold, which means buying enough assets to pump up the monetary base, reports Financial Times. Japan’s Nikkei Stock Average was down 0.5%, China’s Shanghai Composite and Hong Kong’s Hang Seng were trading flat.
In India, the impact of Fed’s tapering may be short-lived because it signals a faster recovery in the US economy. On Thursday, the benchmark BSE Sensex fell the most in a week after the US Federal Reserve said it would cut monthly bond purchases by $10 billion from January.
The Aam Aadmi Party (AAP), which has created a nationwide stir by winning 28 of the 70 seats in Delhi in a stunning debut, is likely to form the state government next week and is carrying out a referendum to get a sense of what people want. AAP may form a minority government backed by Congress.
Reliance Industries Ltd (RIL) shares will be in focus after the government on Thursday allowed RIL to raise the prices of natural gas to $8.4 per mmbtu from April next year on the condition that it will furnish a bank guarantee which be encashed if the company is found guilty of hoarding gas.
Indian IT shares will be in focus after Accenture Plc said that it is expecting its consulting business to turn the corner this financial year as orders are increasing.
Lastly, the general council of the All India Anna Dravida Munnetra Kazhagam said that it would like to see Tamil Nadu chief minister J. Jayalalithaa become the country’s prime minister which rules out an alliance between the party and either of the two main national parties, the Indian National Congress and the Bharatiya Janata Party.