Sensex crashes 1,400 points on Black Monday - Bajaj twins, Tata Motors, ICICI Bank lead the fall
- Indian equity markets have started the week on a bearish note as inflation in the powerful economy like the US has reached its highest point in 40 years.
- US inflation reached 8.6% in May, the steepest rise in consumer prices since December 1981.
- The weak sentiment has prompted huge selling in the market that is already reeling under the stress of eight consecutive sessions of FII sale.
- Check out the top losers on Nifty50 and Sensex in the first hour of trade today.
AdvertisementHeightened inflation in the US markets has pulled down Indian benchmark index Sensex by a massive 1,400 points as it opened today. Top stocks like RIL, HDFC and Infosys lead the dragdown.
Benchmark index, Nifty 50 also slipped by over 400 points.
US inflation reached 8.6% in May, the steepest rise in consumer prices since December 1981. The red hot inflation in the US adds to concerns of more aggressive monetary policy tightening by the Fed, indicating higher interest rates at home as well.
“The uptick in inflation reading would further bolster expectations that the Federal Reserve will continue to aggressively hike rates in the second half of this year, even with signs of economic slowdown. On the domestic front, persistent FII selling continues to dampen sentiment,” said Prashanth Tapse, vice president (research) at Mehta Equities.
Meanwhile, investors look for similar hints on the domestic front as consumer inflation data is due later in the day.
India’s central bank too raised benchmark interest rates last week by 50 basis points to tackle its own price hike troubles — and called it globalized inflation — with lasting effects.
Adding to the tension is the ever persisting Covid troubles after China witnessed a fresh outbreak right after lifting the restrictions.
Amid tensions of rising prices of commodities, high borrowing costs and surge in fuel prices, shares of automobile companies, IT companies, pharma, FMCG companies were under pressure. Along with it, foreign institutional investors (FIIs) have been selling equities for eight consecutive months.
|Top losers||% change as on 9:30|
So far in 2022, FIIs have sold equities worth ₹1.81 trillion from the Indian stock market, as per data by central depository services (India).
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