Sensex Falls Over Nearly 80 Points After US Fed's 'Higher For Longer' Rates Policy

Stock Market India: Equity benchmarks fell in early trade on Thursday, stalling a two-day rally as the sentiment turned sour overnight.

Indian equity benchmarks fell in early trade on Thursday, stalling a two-day rally as the sentiment turned sour overnight after the Federal Reserve projected 'higher for longer' interest rates even as expectations widely show US inflation has likely peaked and concerns from warning signs of a recession.

The BSE Sensex index fell 79.17 points to 62,598.74 in early trade, and the broader NSE Nifty index reflected a sea of red in global stock markets.

A rise in oil prices after after the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) predicted a recovery in demand in 2023, did not help Indian assets.

"With global equities in a sea of red, local equity benchmarks in all probability would see a weak opening on Thursday. The likely bearishness can be attributed to US Fed's hawkish comments that indicated it will keep rates higher through next year and hold off on cuts until 2024," said Prashanth Tapse, Senior VP for Research at Mehta Equities.