Home Business Sensex, Nifty fall 0.6% a day after global recession

Sensex, Nifty fall 0.6% a day after global recession

Stock Market India: Sensex falls nearly 400 points, and Nifty falls over 0.6%

Indian equity benchmarks fell on Thursday, tracking a broader risk-averse sentiment that later pushed Asian markets and world stocks to near 2-year lows after an overnight sell-off on Wall Street ahead of US inflation data. pushed on.

The BSE Sensex index fell 390.58 points to end at 57,235.33, and the broader NSE Nifty index fell 109.25 points to 17,014.35 on Thursday, reversing a sharp rally in the previous session that ended a three-day losing streak.

Weak equities sent MSCI’s 47-nation world index down for the seventh day in a row, continuing the downward trend in recent days for global markets. There was little sign of relief in Asia or Europe.

The STOXX 600 index for Europe as a whole was down 0.6 percent, falling for the seventh consecutive session. Markets are concerned that a rapid rise in global interest rates could trigger a recession, which is why it has fallen by about 4.3 percent in the past six days.

Paul O’Connor, head of multi-asset at Janus Henderson Investors, told Reuters that investors’ questions are whether central banks like the Fed are approaching the end of their interest rate hikes.

“Are we there yet? My feeling is we’re pretty close to pricing in peak rates, but on the growth story I think there’s probably still a lot of downgrades to come,” he said.

It takes a year to 18 months for interest rate hikes to be fully effective. As a result “it is quite plausible that around the end of the year, central banks announce a pause … the labor market will cool down and the housing market will collapse.”

Hope’s views were fueled by a rise in US Emini stock futures, which came after another overnight drop in the S&P 500.

“I’ve been worried for some time now,” Tom Nash, fixed income portfolio manager at UBS Asset Management in Sydney, told Reuters. “The risk of an over-tightening episode and the risk of some crash in the financial markets is greater than I can remember.”

Trades are likely to be dictated by US inflation data to be released later on Thursday as it could affect how far the Federal Reserve’s tough policy cycle will go.

But investors noted that the Fed has already raised rates for the next month by about 75 basis points and that most markets have experienced significant declines recently.

“Given the negative bond and equity moves over the past month, the prospect of reversing all of these moves on a softer CPI is significant,” Adam Cole, chief currency strategist at RBC Europe in London, wrote in a research note.

Bloomberg reported that the correlation between the S&P 500 and Citigroup Inc.’s widely-watched surprise index for the US economy has hit its lowest point since 2015, fueled by aggressive policy tightening and predictions of additional tightening to come. has resulted.

RELATED ARTICLES

Here’s Why Maruti Is Not Joining The EV Race

<!-- -->Over the weekend, I was reading a blog by one of my favorite authors, Morgan Hosel. I came across an interesting conversation...

PSU stocks in limelight as BHEL, PFC and REC hit record highs

<!-- -->Railway stocks rallied as they would benefit from increased government spending. (File)New Delhi: There is a boom in the shares of public...

sebi cuts the deadline for dividend payment to mutual fund unit holders

<!-- -->SEBI cuts the timeline for dividend payment by AMCs to unit holders. (File)New Delhi: Capital markets regulator Securities and Exchange Board of...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Fifa World Cup: Duke celebrated unique after scoring the goal. News & Features Network

In the second match of Fifa World Cup Group D, Australia beat Tunisia 1-0 and kept their hopes alive in the tournament. Australia...

Married lover couple Jitendra and Poonam committed suicide in Bahadurgarh. News & Features Network

Bahadurgarh The loving couple committed suicide by consuming poison in the hotel room. A suicide note has also been found from the...

Elon Musk’s Twitter purchase was predicted 7 years ago, know what is the whole matter

Elon Musk Simpsons: The world's richest man Elon Musk bought the social media platform Twitter last month. It...

Lionel Messi’s Thunderous Strike That Helped Argentina Keep World Cup Hopes Alive. Watch | football news

Lionel Messi's dream of matching late great Diego Maradona's Argentina legacy lives on. The seven-time Ballon d'Or-winning forward pulled level with Maradona on...

Recent Comments