fbpx
  Previous   Next
HomeBusinessSensex Drops 153 Points, Nifty Settles At 15,732

Sensex Drops 153 Points, Nifty Settles At 15,732

India’s benchmark equity indices ended Tuesday lower, but off lows, tracking global peers and as domestic inflation data cemented the case for more rate hikes, going ahead.

High global energy and raw material prices combined with a weak rupee fuelled the fastest annual rise in India’s annual wholesale price-based inflation to 15.88% in May.

US equity futures pared gains on Tuesday and a rebound in European stocks proved short-lived, suggesting markets aren’t out of the woods after a rout driven by expectations of sharper Federal Reserve interest-rate hikes to fight inflation.

Back home, the benchmark Sensex fell 153.13 points to end the session at 52,693.57, while the Nifty was down 42.30 points at 15,732.10.

Realty, metal indices rose, while auto and oil and gas stocks fell. The midcaps and the smallcaps also ended with minor cuts.

Meanwhile, High global energy and raw material prices combined with a weak rupee fueled the fastest annual rise in India’s wholesale prices in more than 30 years, raising expectations for the central bank to order more interest rate hikes.

A surge in crude oil and commodity prices since Russia invaded Ukraine in February has set inflation alight in many countries, forcing central banks to raise interest rates.

Wholesale prices, akin to producer prices, climbed 15.88% in May from year ago levels, staying in double-digits for a 14th straight month, and was, according to economists, India’s highest since September 1991.

The U.S. dollar consolidated gains near a 20-year peak on Tuesday while its rivals from the Aussie to the euro nursed steep losses as traders braced for aggressive interest rate hikes from the Federal Reserve this week.

Expectations for a 75 basis-point increase at the conclusion of a two-day meeting on Wednesday are nearly baked into prices, according to CME’s Fedwatch Tool with investment banks like Goldman Sachs expecting a 75 basis-point rate hike in June and July, and a 50 basis-point rise in September.

A 75 basis-point increase would be the biggest since 1994 and with world stock markets nursing deep losses, the dollar’s appeal as a safe-haven asset is also boosting its allure.

The Indian government’s spending on information technology is expected to grow 12.1% to $9.5 billion in 2022, far higher than the 5% rise globally, according to Gartner, Inc. The research firm estimates government IT spends for the year globally to touch $565.7 billion.

European stocks edged higher from their lowest level in over a year as investors bought the dip after a global rout sparked by worries of aggressive central bank policy tightening amid stubbornly high inflation.

The Stoxx Europe 600 Index was up 0.3% after slumping Monday to its lowest since March 2021. Banks led the advance with rate-sensitive sectors outperforming following a dip in Treasury yields. Insurance and energy stocks also rose, while real estate declined.

More News

Olympian Deepak Punia Wins Bronze In Asian Wrestling Championships 2022

Tokyo Olympian Deepak Punia won a bronze medal after defeating Maksat Satybaldy in the 86kg freestyle weight category at the U23 Asian wrestling championships...

Rajat Kapoor And Mallika Sherawat Starrer ‘RK/Rkay’ Is All Set To Release On July 22

Actor-filmmaker Rajat Kapoor’s upcoming film ‘RK/Rkay’ starring Mallika Sherawat and Kubbra Sait is all set to release on July 22. The film tells the tale...

Sensex Rises 433 Points, Nifty Settles At 15,832

The Benchmark indices ended higher for the third straight session on June 27 with Nifty above 15800 amid buying across the sectors. At close, the...

RELATED NEWS

Rolls-Royce Announces 3rd Edition of Unnati Scholarship Programme For Women Engineering Students

On International Women in Engineering Day, Rolls-Royce, one of the world’s leading industrial technology companies, announced the launch of the third edition of its...

Sensex Jumps 443 Points, Nifty Settles At 15,557

The benchmark equity indices on the BSE and National Stock Exchange (NSE) gained nearly 1 per cent on Thursday led by gains in automobiles,...

Sensex Ups Second Consecutive Day With 934 Points, Nifty Settles At 15,639

The Benchmark indices ended higher for the second consecutive session on June 21 with Nifty finishing above 15,600. At close, the Sensex was up 934.23...