Indian shares fell sharply on Tuesday amid a weak trend in global markets and concerns that rising inflationary pressures in the country could force RBI to initiate rate hikes at the next policy meet.
The U.S. dollar strengthened and bond yields climbed after St. Louis Fed President James Bullard said that rate increases of 75 basis points could be considered, if needed to combat inflation.
India’s 10-year bond yield spiked once again, adding to pressure on the RBI to raise interest rates to tame inflation.
Risk-off sentiment prevailed in global markets in view of Russia’s renewed campaign in eastern Ukraine and worries over economic slowdown.
The benchmark S&P BSE Sensex fell 703.59 points, or 1.23 percent, to 56,463.15 on the back of fag-end sell-off in financials.
The broader NSE Nifty index dropped 215 points, or 1.25 percent, to settle at 16,958.65.
HDFC Bank, SBI Life, HDFC Life and HDFC gave up 4-6 percent, while Reliance Industries, Coal India and Apollo Hospitals climbed 3-5 percent.
Fintech major Paytm ended around 3 percent lower, after having jumped more than 4 percent earlier in the day as global financial major Citi initiated its coverage with a ‘Buy’ rating on the stock.
Sensex, Nifty End Sharply Lower After Fag-end Selling
2022-04-19 10:50:13
