Indian stocks fell sharply over weak global cues; Sensex slips 800 pts
Mar 10, 2023
New Delhi [India], March 10 : Stock indices in India fell for the second consecutive session tracking weak cues from the overnight US markets. Also, the US central bank signalling that further hikes in interest rates may be needed to bring inflation to comfortable levels also hurt the market sentiment.
At 9.34 am, Sensex traded at 59,006.06 points, down 800.22 points or 1.34 per cent, whereas Nifty traded at 17,372.30 points, down 217.30 points or 1.24 per cent.
All Nifty sectoral indices too were in the red Friday morning.
According to US Federal Reserve Chair Jerome Powell, despite inflation moderating in recent months, the process of getting it back down to two per cent is still a long way away and the path is likely to be bumpy.
Consumer inflation in the US moderated to 6.4 per cent in January from 6.5 per cent in December, and 7.1 per cent the previous month but still is way above the 2 per cent target.
The US central bank's policy rate is now in a target range of 4.50-4.75 per cent, the highest level in 15 years, and notably, it was near zero in the early part of 2022.
Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
"...investors may wait for this near-term uncertainty to pass. However, sharp corrections, particularly in banks, may be used to buy the leading names in private sector banks," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
