Indian equities ended lower for a third straight day on Tuesday as investors anticipated aggressive rate hikes by central banks, including the US Federal Reserve, to tame multi-year high inflation. India’s wholesale price index (WPI) inflation, too, climbed to 15.8 per cent in May, its highest level since 2012. At close, the Sensex was down 153.13 points or 0.29 per cent at 52,693.57, and the Nifty was down 42.30 points or 0.27 per cent at 15,732.10.
Top Gainers and Losers
Bajaj Auto, IndusInd Bank, Hindalco Industries, ONGC and Tech Mahindra were among the top Nifty losers, while gainers were NTPC, M&M, Bharti Airtel, Apollo Hospitals and Divis Labs.
Among sectors, auto, metal and oil & gas ended in the red, while capital goods, power and realty indices ended higher.
Berger Paints Slips
Among stocks, Berger Paints slipped 1 per cent. The company anticipates a loss between Rs 75 lakh and 1 crore due to the accidental fire at the factory outlet in Howrah, West Bengal. However, the loss was fully recovered by insurance as the total sum assured for the Howrah factory was Rs 218 crore, it said.
Vinod Nair, head of research at Geojit Financial Services, said: “Domestic market restrained from heavy sell-off as CPI data moderated on an MoM basis and this had a calm down effect amidst global volatility. However, elevated WPI data continued to dominate the broad market, which is cautious awaiting tomorrow’s outcome of Fed policy. Earlier the global market was anticipating a 50bps hike but now is worried about a higher rate hike due to persistent US inflation”
US Stock Markets Enter Bearish Territory
Investors’ will also digest the dull momentum across global markets as fear of aggressive rate hikes by the US Federal Reserve plunged the US stock markets into the bearish territory.
Global Cues
US equities tumbled on Monday, with the S&P 500 confirming it is in a bear market, as fears grow that the expected aggressive interest rate hikes by the Federal Reserve would push the economy into a recession. The S&P 500 lost 149.91 points, or 3.85 per cent, to end at 3,750.95 points, while the Nasdaq Composite lost 526.82 points, or 4.65 per cent, to 10,813.20. The Dow Jones Industrial Average fell 857.70 points, or 2.73 per cent, to 30,535.09.
Tokyo stocks opened lower on Tuesday, extending a rout on Wall Street, as investors bet on more aggressive US Fed rate hikes to address inflation following key price data. The benchmark Nikkei 225 index was down 1.56 per cent, or 419.93 points, at 26,567.51 in early trade, while the broader Topix index was down 1.38 per cent, or 26.24 points, at 1,874.82.
Asian shares tumbled on Tuesday after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high on fears aggressive U.S. interest rate hikes would push the world’s largest economy into recession. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9 per cent.
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