After opening their day on a flat note, Indian share markets witnessed volatile trading activity throughout the day and ended their session marginally higher. Gains were largely seen in the IT sector and banking sector, while realty stocks and metal stocks ended the day lower.
At the closing bell, the BSE Sensex stood higher by 161 points (up 0.5%) and the NSE Nifty closed higher by 42 points (up 0.4%). The BSE Mid Cap index ended the day down by 0.1%, while the BSE Small Cap index ended the day down by 0.3%.
The rupee was trading at 65.4 to the US$ at the time of writing.
IDBI Bank share price witnessed selling pressure today as the Reserve Bank of India (RBI) slapped a monetary penalty of Rs 30 million on the bank for non-compliance to the Income Recognition and Asset Classification (IRAC) norms.
In the news from global financial markets, US stocks witnessed selling pressure while Treasuries rose after minutes from the most recent Federal Reserve meeting showed Fed officials leaning toward a slightly faster pace of tightening.
Note that the US central bank raised rates last month and forecasted at least two more hikes for 2018. It also lifted its economic growth projections for this year and 2019.
With the US economy chugging along for many months, the Fed is now gradually easing off the stimulus it provides to the economy by raising interest rates to more normal levels.
How does a US interest rate hike affect Indian investors?