Hawkish Federal Reserve triggers bank stock slide

© Provided by The Times of India

MUMBAI: Stocks of banking & financial companies remained under pressure on Thursday following the US Federal Reserve’s move to hold rates after hikes across 15 months while indicating two more increases in 2023. Such a decision could force the RBI to also raise rates in the next half of the year, market players said. As a result, banking, financial services and insurance (BFSI) stocks took a major hit and most closed lower.

As these stocks led the slide,the sensex, after gyrating between positive and negative territories, closed 311 points lower at 62,918 points.

According to Mehta Equities senior VP (research) Prashanth Tapse, the stock market snapped its winning streak on Thursday due to profit-booking and cautious investor sentiment, despite the US Fed keeping rates unchanged.