Indian shares fell for an eighth consecutive session on Tuesday amid considerable uncertainty over the trajectory of inflation, interest-rates and global growth.
The dollar regained traction and was set for its first monthly gain since September on expectations that the Federal Reserve will raise rates more than initially expected.
U.S. Fed Governor Philip Jefferson said Monday that inflation for services in the United States remained “stubbornly high” and he was under “no illusion” that inflation would return quickly to the Fed’s target.
Data showed French and Spanish inflation rose more than expected in February, increasing pressure on the European Central Bank to keep raising rates.
As rate worries mount, Indian shares gave up early gains to end firmly in the red.
The benchmark S&P/BSE Sensex fell 326.23 points, or 0.55 percent, to 58,962.12 in volatile trade.
The broader NSE Nifty index settled 88.75 points, or 0.51 percent, lower at 17,303.95 ahead of GDP numbers for Q3 due to be unveiled later in the day.
Cipla slumped 4.7 percent to extend recent losses after the U.S. FDA issued Form 483 with 8 observations for its Pithampur manufacturing facilities.
Similarly, Vedanta plunged 6.7 percent to extend losses for the eighth straight session on concerns over its pile of debt.
Reliance Industries, ONGC, Dr Reddy’s Laboratories and Hindalco fell 2-3 percent.
On the positive side, Adani Group stocks rebounded after recent string of losses.
Adani Enterprises shares soared 14.9 percent and Adani Ports jumped over 5 percent.
Mahindra & Mahindra, Britannia Industries and Asian Paints rose 1-3 percent.
Sensex, Nifty Extend Losing Streak On US Rate Worries
2023-02-28 10:27:24
