Indian stocks slide on fears of US rate hike in early trade on Wednesday

Asian peers also fell as strong U.S. economic data added to expectations the U.S. central bank would not be slowing the pace of interest rate hikes any time soon

FPJ Web DeskUpdated: Wednesday, September 07, 2022, 10:28 AM IST
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Indian shares slid on Wednesday, led by losses in technology and financial stocks, while worries that the U.S. central bank will keep raising interest rates dented investor sentiment.

Asian peers also fell as strong U.S. economic data added to expectations the U.S. central bank would not be slowing the pace of interest rate hikes any time soon. Wall Street ended lower on Tuesday.

In Mumbai, the Nifty IT index and the Nifty Bank index fell as much as 0.9% each.

At 10.25 am, Sensex traded at 58,892.14 points, down 304.85 points, whereas Nifty traded at 17,570.10 points, down 85.50 points.

Among the Nifty 50 companies, 31 declined and the rest advanced this morning, National Stock Exchange data showed.

"High volatility with downward bias is in store for the markets in the near-term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"When globally equities correct, India too will correct. But India will fall less since falling crude, decent economic growth, impressive corporate earnings and retail investor enthusiasm will support the market at lower levels."

Vijayakumar added domestic economy-facing segments like banks, autos, capital goods, telecom and FMCG are relatively strong sectors.

For fresh cues, Indian investors now await retail inflation data for July, which will be released around mid-month.

India's retail inflation fell to 6.71 per cent in July, the lowest level in five months, helped by an easing in food and oil prices, as per the National Statistical Office (NSO) data.

However, retail inflation has been over the Reserve Bank of India's upper tolerance band of 6 per cent for the seventh consecutive month in a row. Retail inflation was at 7.01 per cent in June.

(with inputs from agencies)

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