Market Brief: Nifty, Sensex Recoup Early Losses, VIX Surges, Nifty IT Tanks

By Malvika Gurung — The domestic market crashed on Wednesday amid glum cues from global markets after white-hot inflation in the US for August sent shockwaves across markets globally. 

Indian equity benchmark indices and opened deep in red, shedding up to 1.3% each in early trade, as higher-than-expected US CPI data fuelled concerns of an ultra-hawkish monetary policy by the Fed.

As the session progressed, the headline indices recouped early losses and were last seen trading up to 0.4% lower.

At the time of writing, all sectoral indices listed under the Nifty umbrella except and were trading in the green, recovering all the losses earlier in the day. Nifty IT tanked 3.15%, while traded 1.26% higher.

The volatility barometer surged 4.6% to 18.3 while writing.

The US dollar neared a 24-year high against the yen as US yields jumped on bets for an even aggressive monetary tightening by the Fed next week. The depreciated 0.13% compared to the greenback, trading at 79.47/$1.

“The worse-than-expected CPI inflation data in the US, despite cooling gas prices, was a surprise. Now the market fears that inflation is getting entrenched and an ultra-hawkish Fed might trigger a hard landing for the US economy,” said V K Vijayakumar of Geojit Financial Services.

Source link

Leave a Comment

Your email address will not be published.

Scroll to Top