Indian shares look set to plunge on Monday after all three major Wall Street indexes ended down more than 2 percent on Friday amid uncertainty around aggressive near term interest-rate rises.
Continued selling by foreign portfolio investors, uncertainty surrounding the Russia-Ukraine war, weak quarterly earnings results and monthly derivatives expiry may also serve to keep underlying sentiment cautious.
Prominent companies reporting their earnings this week include HDFC Life, Bajaj Auto, HUL, Ambuja Cement, Axis Bank, Bajaj Finserv, Vedanta, IndusInd Bank, Maruti Suzuki, Ultratech Cement and Wipro.
ICICI Bank on Saturday beat Street estimates with a 59 percent growth in quarterly net profit.
UBS has downgraded India’s 2022-23 economic growth forecast by 70 basis points to 7 percent, citing slowing global growth due to high commodity prices.
Asian markets followed Wall Street lower this morning and the dollar remained elevated at two-year highs while oil extended losses on demand concerns.
The euro inched up after France President Emmanuel Macron comfortably defeated far-right rival Marine Le Pen on Sunday.
U.S. stocks slumped on Friday to reach their worst levels in over a month amid renewed concerns about risks from interest rate hikes.
The Dow plummeted 2.8 percent to post its biggest single-day loss since October 2020, while the tech-heavy Nasdaq Composite plunged 2.6 percent and the S&P 500 lost 2.8 percent.
European stocks also tumbled on Friday after hawkish comments from the Federal Reserve chief and worries that a spreading Covid-19 outbreak in China will weigh on global demand.
The pan European Stoxx 600 retreated 1.8 percent. The German DAX declined 2.5 percent, France’s CAC 40 index gave up 2 percent and the U.K.’s FTSE 100 shed 1.4 percent.
Sensex, Nifty Set To Plunge On Rate Hike Fears
2022-04-25 02:23:05
