Indian shares plummeted on Thursday amid a global sell-off as lingering worries surrounding inflation and rising interest rates spooked investors.
U.S. consumer price inflation data released overnight did little to ease investor worries over the outlook for inflation and interest rates.
Federal Reserve Bank of St. Louis James Bullard said on Wednesday he was content with a plan to raise interest rates by 50 basis points at each of the next two meetings and would like to see the Fed’s policy rate go up to 3.5 percent by the end of the year.
Closer home, the Reserve Bank of India is likely to raise its inflation projection for the current fiscal year at its June monetary policy meeting and announce more rate hikes in its effort to tame high inflation.
India’s economic growth rate is likely to slow if the central bank hikes interest rates, Finance Secretary TV Somanathan told CNBC TV18 today.
The MPC, headed by the RBI Governor, is scheduled to meet between June 6 and June 8.
The benchmark S&P BSE Sensex plunged 1,158.08 points, or 2.14 percent, to 52,930.31, continuing its downward trend for the fifth day running.
The broader NSE Nifty index ended down 359.10 points, or 2.22 percent, at 15,808, with JSW Steel, Tata Steel, Tata Motors, IndusInd Bank and Adani Ports losing 4-6 percent.
Sensex, Nifty Nosedive On Inflation, Growth Concerns
2022-05-12 10:25:21
