Indian stock market nifty indexes fell as US Federal Reserve Chairman Jerome Powell delivered hawkish remarks, implying that monetary policy will be tightened. He suggested when the US central bank might have to act more forcefully to combat inflation and stated explicitly that a half-point interest rate hike is “on the table” for the policy meeting next month. The remarks put investors off, and most European and American Nifty50 stocks fell. Japan, Australia, South Korea, and Hong Kong saw their stocks fall, while Shanghai’s rose somewhat.
Stock Market Nifty
After the US Fed chairman’s hawkish views soured global attitudes, the Indian Nifty index fell, driven by losses across the board. The Sensex fell 714.53 points, or 1.23 percent, to 57,197.15, while the Nifty50 stocks fell 220.60 points to 17,172. All sectors ended the day, including banks, financials, and commodities, suffering the worst hits. M&M, Bharti Airtel, and Maruti were among the top gainers.
A day after Tata Consultancy Services (TCS) kicked off the results season; investors expected additional earnings reports from India Inc. After falling more than 1% during the session, both leading Nifty indexes ended the day with losses of 0.8 percent. The Sensex finished at 58,576.4, down 388.2 points from its previous close, and the Nifty50 stocks ended at 17,530.3, down 144.7 points.
As the market value of BSE-listed businesses fell to Rs 271.9 lakh crore, investors lost Rs 3.2 lakh crore in wealth. Global market weakness dampened Dalal Street’s mood as fears about a forceful contraction of pandemic-era monetary policy grew. The Russia-Ukraine conflict and mounting COVID infections in China stayed on investors’ minds. Blue-chip companies Hindalco, Coal India, Grasim, Eicher Motors, Tata Steel, HDFC Life, Bajaj Auto, Dr. Reddy’s, and Tech Mahindra were the worst losers, losses ranging from 2.2 percent to 5.8%. Axis Bank, Kotak Mahindra Bank, PowerGrid, ICICI Bank, and IndusInd surged the highest among the 11 gainers in the Nifty pack, increasing between 0.6 and 1.6 percent. The 30-scrip index was dragged down by Reliance Industries, Infosys, and Larsen & Toubro.
In the last trading hours, a rally in financial equities, particularly in the private banking sector, protected the significant indices from further losses. The Nifty Bank gained 0.4 percent on the day after falling as high as 0.9 percent earlier in the session. TCS failed to hold on to intraday gains as IT equities remained under pressure throughout the day. For the quarter ending, the country’s largest IT business recorded a 1.6 percent sequential improvement in net profit to Rs 9,926 crore and a 3.5 percent gain in sales to Rs 50,591 crore at nifty for the quarter ending.
Global Markets
Banking stocks drove European stocks to a near one-week low. The nifty index fell under 0.9 percent during early trading. Futures on the S&P 500 were up 0.1 percent, indicating a cautious start on Wall Street.
Despite this fall, the market will surely recover and grow once the temporary crisis subsides. This is the hope that investors rely on during this tough time.
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