Sensex slides on back of global cues

The benchmark index BSE Sensex dipped around 350 points and was down close to a per cent on Friday replicating the global markets. The US market, Asian indices all closed red on Thursday.

The global markets and the Indian equities are reacting to the negative outlook presented by US Federal Reserve Chief Jerome Powell following the monetary policy meeting on Wednesday. He hinted a withdraw of stimulus and financial tightening across nations in 2019. This led to the US dollar losing against major currencies thereby increasing the cost of borrowing for US companies and an impact on the economy.

Brent crude oil price in the international market fell about 5 per cent to US$54.35, a 17-month low, on the back of oversupply and lesser demand due to slower economy. The lead the Indian rupee rise and trade below the US$70 mark. Strengthening rupee has pulled down IT stocks during the last two sessions of trade.

There also seems to be a bout of profit-booking happening in the market. With Christmas and holiday season ahead, market participants, especially the FIIs. Large-cap frontline stocks were among the top losers on the index led by Maruti down by 2.67 per cent, followed by Infy down 2.12 per cent and ICICI Bank, Asian Paint, Reliance, Wipro all down more than 1 per  cent. The only stocks trading in the green were Tata Motors and SBI.