Indian shares fell notably on Friday as signs of sticky inflation in the U.S. raised doubts on early Fed rate cuts.
Hotter-than-expected U.S. producer price inflation print sent the dollar and bond yields higher, denting investors’ appetite for riskier assets.
According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged at June meeting climbed from 25 percent to 40 percent after the CPI data released earlier this week and Thursday’s PPI data.
The benchmark S&P BSE Sensex ended the session down 453.85 points, or 0.62 percent, at 72,643.43.
The broader NSE Nifty index settled 123.30 points, or 0.56 percent, lower at 22,023.35.
Automakers led losses, with Hero MotoCorp, Tata Motors and Mahindra & Mahindra falling 2-5 percent.
PSU stocks also faced selling pressure, with BPCL and Coal India tumbling 4.2 percent and 2.9 percent, respectively.
Among those that gained, Adani Ports, Bajaj Finance, HDFC Life, Bharti Airtel and UPL climbed 1-3 percent.
Market Analysis
Sensex, Nifty Decline On Fed Worries
2024-03-15 10:23:17
