Benchmark indices reflected global cues as both Nifty and Sensex ended in red. US inflation was at 7.5% YoY, which was more than the expected rate of 7.2%. This made 10-year US Treasury bond yields to surge more than 2%. The world markets along with the US markets fear that the US Federal Reserve interest rate hike might be more than the estimates.
The Fed wants to tame inflation by rising the interest rates so that it can control the liquidity in the markets. But this action also control inflows to equity markets. This fear has reflected in today’s trade across the globe.
Nifty closed below 17400. Nifty dropped 231 points to close at 17374.80. Sensex dropped 773 points to end at 58152.92.
All sectoral indices ended in the red. However, Nifty IT, Nifty Consumer Durables, Nifty PSU, and Nifty Realty were worst performing sectors. Mid and Small-cap stocks also witnessed correction.
Out of 50 stocks on Nifty, only 5 stocks have seen gains.
Top Gainers on Nifty:
IndusInd Bank 1.03%
Tata Steel 0.49%
Top Losers on Nifty:
Tech Mahindra -2.97%
HCL Tech -2.24%