New Delhi: Global fall in stock markets dragged domestic indices down on Monday as inflation fears and the concerned reaction of central banks left investors nervous.
The 30-share index of BSE closed at 52,847, down 1,457 points, or 2.68 per cent; while the broad NSE Nifty It closed at 15,774, down 427 points or 2.64 per cent.
Bajaj Finserv was the biggest loser in the Sensex pack, falling 7.02 per cent, followed by Bajaj Finance, IndusInd Bank, Tech Mahindra and ICICI Bank.
Nestle was the only winner among all 30 stocks.
On the NSE platform, all sub-indices ended in the red with Nifty IT, Metal, Media, Realty falling over 3 per cent each.
The major causes of today’s accident are as follows:
* Inflation worries increase
Rising US inflation data released on Friday fueled bets that the US Federal Reserve, which meets on Wednesday, could be more aggressive and rate hikes higher than expected, which weighed on stocks and boosted the dollar. .
US inflation jumped 8.6 percent in May, the fastest pace since December 1981, as the Ukraine war and China’s lockdown pushed up energy and food prices.
Expectations of even more aggressive rate hikes from global central banks prompted investors to sharpen their bearish bets on global growth. It’s a big week for central banks holding policy meetings with the Fed, the Bank of England and the Swiss National Bank.
The US Federal Reserve is expected to raise rates this week, with some forecasting a 75-basis-point increase.
Jigar Trivedi, currency research analyst, Anand Rathi Shares, said, “We may see further weakness ahead of the FOMC meeting, where the Fed is expected to hike rates by 50 bps and show a more aggressive tone. There cannot be runaway depreciation in between.” And stockbrokers told Reuters.
* Rupee at all-time low
The rupee hit a record low in early trade on Monday, while bond yields hit a more than three-year high amid a sharp jump in US inflation data.
The benchmark 10-year bond yield was trading at 7.59 per cent, after touching 7.61 per cent, the highest level since February 28, 2019. The 10-year yield ended Friday at 7.52 per cent.
Currencies in developing countries were also affected against a stronger dollar, with South Africa’s rand down 1.2 per cent. The currency touched its lowest level in nearly four weeks.
The Turkish lira fell in a day to 17.27 per dollar. Data shows Turkey’s industrial output grew 10.8 per cent year-on-year in April, faster than Reuters forecast of 8 per cent and rising for the 22nd month in a row. Production is stagnant against the backdrop of the lira’s weakness and rampant inflation.
* Global markets near fresh lows
World stocks plunged toward new lows in 2022 and the Japanese yen on Monday to levels not seen in nearly a quarter century as red-hot US inflation prompted central banks to talk about even more aggressive policy in a big week. I expressed concern.
Most Central European currencies and stocks weakened on Monday, as global negative market mood and a stronger dollar put pressure on assets in the region, with Hungarian forint trading near its historic lows versus the euro.
The index of world stocks is down 0.7 per cent, just short of a new 2022 low. European stock indexes are a sea of red in early trade, with benchmark stocks falling nearly 2 per cent, while US stock futures signaled a lower start.
*china covid lockdown
Most Asian markets were down due to the fresh Covid-19 lockdown in Chaoyang, China. It announced three rounds of large-scale testing to contain the “brutal” Covid-19 outbreak that emerged at once.
Chinese blue chips fell 1.42 per cent and Hong Kong’s Hang Seng fell 3.29 per cent. Japan’s Nikkei fell 3.03 per cent and South Korea’s Kospi fell 3.27 per cent.
China stuck to an economically damaging zero-Covid policy to fight the new outbreak of the disease.
Parts of Shanghai were again locked down and mass testing on millions of people came just weeks after authorities lifted tough measures in the country’s largest city.
(with inputs from agencies)
The 30-share index of BSE closed at 52,847, down 1,457 points, or 2.68 per cent; while the broad NSE Nifty It closed at 15,774, down 427 points or 2.64 per cent.
Bajaj Finserv was the biggest loser in the Sensex pack, falling 7.02 per cent, followed by Bajaj Finance, IndusInd Bank, Tech Mahindra and ICICI Bank.
Nestle was the only winner among all 30 stocks.
On the NSE platform, all sub-indices ended in the red with Nifty IT, Metal, Media, Realty falling over 3 per cent each.
The major causes of today’s accident are as follows:
* Inflation worries increase
Rising US inflation data released on Friday fueled bets that the US Federal Reserve, which meets on Wednesday, could be more aggressive and rate hikes higher than expected, which weighed on stocks and boosted the dollar. .
US inflation jumped 8.6 percent in May, the fastest pace since December 1981, as the Ukraine war and China’s lockdown pushed up energy and food prices.
Expectations of even more aggressive rate hikes from global central banks prompted investors to sharpen their bearish bets on global growth. It’s a big week for central banks holding policy meetings with the Fed, the Bank of England and the Swiss National Bank.
The US Federal Reserve is expected to raise rates this week, with some forecasting a 75-basis-point increase.
Jigar Trivedi, currency research analyst, Anand Rathi Shares, said, “We may see further weakness ahead of the FOMC meeting, where the Fed is expected to hike rates by 50 bps and show a more aggressive tone. There cannot be runaway depreciation in between.” And stockbrokers told Reuters.
* Rupee at all-time low
The rupee hit a record low in early trade on Monday, while bond yields hit a more than three-year high amid a sharp jump in US inflation data.
The benchmark 10-year bond yield was trading at 7.59 per cent, after touching 7.61 per cent, the highest level since February 28, 2019. The 10-year yield ended Friday at 7.52 per cent.
Currencies in developing countries were also affected against a stronger dollar, with South Africa’s rand down 1.2 per cent. The currency touched its lowest level in nearly four weeks.
The Turkish lira fell in a day to 17.27 per dollar. Data shows Turkey’s industrial output grew 10.8 per cent year-on-year in April, faster than Reuters forecast of 8 per cent and rising for the 22nd month in a row. Production is stagnant against the backdrop of the lira’s weakness and rampant inflation.
* Global markets near fresh lows
World stocks plunged toward new lows in 2022 and the Japanese yen on Monday to levels not seen in nearly a quarter century as red-hot US inflation prompted central banks to talk about even more aggressive policy in a big week. I expressed concern.
Most Central European currencies and stocks weakened on Monday, as global negative market mood and a stronger dollar put pressure on assets in the region, with Hungarian forint trading near its historic lows versus the euro.
The index of world stocks is down 0.7 per cent, just short of a new 2022 low. European stock indexes are a sea of red in early trade, with benchmark stocks falling nearly 2 per cent, while US stock futures signaled a lower start.
*china covid lockdown
Most Asian markets were down due to the fresh Covid-19 lockdown in Chaoyang, China. It announced three rounds of large-scale testing to contain the “brutal” Covid-19 outbreak that emerged at once.
Chinese blue chips fell 1.42 per cent and Hong Kong’s Hang Seng fell 3.29 per cent. Japan’s Nikkei fell 3.03 per cent and South Korea’s Kospi fell 3.27 per cent.
China stuck to an economically damaging zero-Covid policy to fight the new outbreak of the disease.
Parts of Shanghai were again locked down and mass testing on millions of people came just weeks after authorities lifted tough measures in the country’s largest city.
(with inputs from agencies)