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Sea of red across Indian markets; Sensex turns negative for the year

By Staff Writer

  • 23 Sep 2022
Sea of red across Indian markets; Sensex turns negative for the year
Credit: Reuters

Stock markets fell sharply today with Sensex ending at 58,553.41 after slumping over 1,000 points and turning negative for the year, while the Nifty shed 302 points to end 17,327.45.  

Global stocks fell for a third day today on fears of a possible global recession after rate hikes by the Federal Reserve and other central banks to control Investors worry central banks might be willing to tolerate a painful economic slump to get prices under control. At day's low, Sensex fell to 57,981.

The US Fed on Wednesday lifted its benchmark rate and signalled that it expects that benchmark rate to be 4.4% by the year’s end. Central banks in Britain, Sweden, Switzerland and Norway also hiked interest rates. 

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“Domestic and international equity markets this week reacted to Federal Reserve’s 75 bps rate hike decision. Crude oil prices have broadly remained stable but the Indian currency have depreciated in recent days. For the domestic market, one of the key near-term events to watch out for is the upcoming RBI monetary policy," said Shrikant Chouhan, head of equity research (retail) at Kotak Securities.

The rupee today hit a new low, breaching the 81 mark against the US dollar. 

“Rupee fell to fresh all-time lows against the US dollar after the Fed raised rates earlier this week. Most of the currencies are under pressure as the dollar continues to strengthen," said Gaurang Somaiya, forex & bullion analyst, Motilal Oswal Financial Services.

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Financials tumbled in today's sell-off.  The Nifty Bank fell nearly 2.5%. 

“Near-term banks should under-perform as rupee and bond yields re-adjust. However, credit growth estimates will be revised upwards and hence not sure whether correction will be deep enough to trade," Emkay Global Financial Services said. 

“India's economic resilience and high frequency indicators are rock solid. Exports will weigh down on growth a bit later in the year. Indian markets should outperform but absolute out-performance is unlikely. 5-7% cut and time correction from the recent Nifty highs of 18,100 is more likely," it added. 

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