Indian shares look set to open on a bearish note Tuesday as a global sell-off continued on concerns about the impact of high inflation on global growth.
Benchmark indexes Sensex and the Nifty fell around 0.7 percent each on Monday and the rupee slumped 60 paise to settle at a record low of 77.50 against the dollar on the back of rising U.S. Treasury yields amid fears of an aggressive rate hike by the Federal Reserve at its June meeting.
Asian markets hit two-year low this morning and the dollar held steady against other major currencies, while oil prices extended losses on demand worries after tumbling around 6 percent in the U.S. trading session. Gold firmed up as the benchmark 10-year yield edged back under 3 percent.
U.S. stocks sank in a widespread selloff overnight amid concerns over the Fed’s ability to combat high inflation and avoid an outright recession.
The tech-heavy Nasdaq Composite plummeted 4.3 percent to reach its lowest closing level since November 2020, while the Dow lost 2 percent and the S&P 500 tumbled 3.2 percent to hit one-year closing lows.
European stocks ended deep in the red on Monday on concerns about rising interest rates, slowing Chinese growth and a tightening lockdown in Shanghai.
The pan European Stoxx 600 plunged 2.9 percent. The German DAX declined 2.2 percent, France’s CAC 40 index plummeted 2.8 percent and the U.K.’s FTSE 100 gave up 2.3 percent.
Market Analysis
Sensex, Nifty Poised For Sluggish Start
2022-05-10 02:55:22
