Fed sinks stock market, but semiconductor theme pumps some to record high

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By S Jha

New Delhi, September 22: Expectedly the US Fed hiked the rates by three quarters to one that sent the global equity markets crashing amid hawkish commentary on inflation. Fear of the US slipping into recession has only grown stronger, as the energy prices and its shortage are driving people in Europe to take to the street.

The Indian equity market, while behaving in denial of the US Fed decision, sought to shrug off the global gloom to cut the losses to briefly turn green, but afterwards succumbed to heavy selling led by the foreign institutional investors, who were meekly resisted by their domestic counterparts.

The FIIS net sold Rs 2510 crores, while the DIIS had a net buy of Rs 263 crores.

The financials took the sever beatings, as the shares of the private banks sunk on the back of fear that the Reserve bank of India will have no option but to hike the benchmark rates to match the Fed actions and also to counter the inflationary pressure in the country.

But the auto sector remained firm, with Maruti and Eicher Motors not dismounting from their strong runs on the bourses.

Several small and mid-caps outperformed the broader market, netting health gains even amid the rout on the equity market.

KPI Green Energy and Data Patterns remained firm, extending their gains this month on the bourses.

Hind Rectifiers this month has gained over 40 per cent despite poor financials in the June quarter, giving rise to the speculations among the investors and the brokers.

The company engaged in the manufacturing of power equipment for electric trains and also semiconductor is nearing record high on the stock market. It may be noted that the semiconductor theme amid the Central government working on self-reliance with a Rs 75000 crore mission is driving some of the share prices of companies who have exposure to the industry.

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