Recession fears haunt the markets again; IT, pharma stocks drag down Sensex, Nifty

• Indian markets traded lower as SGX Nifty, an early indicator of the market, was down 0.15%.
• The US Fed’s meeting minutes have given mixed signals and made it difficult to anticipate its next rate hike move.
• Sensex was down 247 points to trade at 60,012 and Nifty50 was trading 73 points lower at 17,870.

Indian markets traded lower following their global peers today. Sensex however was able to trade above the 60,000 mark, which it hit yesterday after a four month gap.

The US Fed meeting minutes were released yesterday and it brought back recession fears. The stocks of IT and pharmaceutical companies which depend on the US for most of their business, went down and dragged the indices with it.

Sensex was down 247 points at 60,012 and Nifty50 was trading at 73 points lower at 17,870.
Global markets too traded lower as the US Fed minutes signaled more hikes going ahead, although it indicated that the pace of hikes may slow down.

“As the stance of monetary policy tightened further, it likely would become appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation,” according to US Fed minutes.

Following the release of Fed minutes, treasury yields rose and equity markets witnessed some losses.

The fact that the central bank is committed to raising rates to tame inflation and also slow its pace if necessary — have given mixed signals and have made it difficult to anticipate the Fed’s next move.

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