From the Sensex pack, Tata Steel and Infosys were the top losers, falling over 2%, Infosys, Kotak Bank, M&M, Tata Motors, ICICI Bank, UltraTech Cement and Reliance also ended with losses
, banking and IT stocks after a strong US jobs report renewed fears that the Federal Reserve in all probability will sustain aggressive rate hikes for longer. Foreign investors continued with their selling.
The 30-share BSE benchmark Sensex declined 335 points or 0.55% to settle at 60,507. The broader NSE Nifty advanced 89 points or 0.50% to end at 17,765.
From the Sensex pack,
and
were the top losers, falling over 2%. Infosys,
, M&M,
,
,
and Reliance also ended with losses.
On the other hand,
,
,
,
and
closed with gains.
Sector-wise, the Nifty Metal fell 2.2% and Nifty IT declined 0.61%. However, PSU banks, media, pharma, realty, healthcare, consumer durables and FMCG stocks closed higher. In the broader market, Nifty Midcap50 increased 0.74% and Smallcap50 surged 0.62%.
“A strong job market in the United States pushed the global market lower on rate hike fears, as it offers the Fed more leeway in enacting stricter policy measures. This was in contrast with the recent rally in the global indices on the expectation that the economy is in its last phase of policy tightening,” said Vinod Nair, Head of Research at Geojit Financial Services.
RBI’s policy announcement on Wednesday will add more colour to its future rate actions, which is expected to hike rate by 25bps, Nair said.
Global Markets
Global stock markets and Wall Street futures sank Monday after strong US jobs data fanned fears of more interest rate hikes to cool inflation.
In Asia, the Shanghai Composite Index fell 0.8% to 3,237.69 while the Nikkei 225 in Tokyo advanced 0.7% to 27,693.65. The Hang Seng in Hong Kong sank 2% to 21,222.16.
In early trading, the FTSE 100 in London lost 1% to 7,827. The DAX in Frankfurt shed 1.1% to 15,303 and the CAC 40 in Paris tumbled 1.4% to 7,129.
Currency Watch
The rupee plunged against the dollar on Monday, marking its biggest daily decline in over four months, as an upbeat US jobs report fanned fears of more rate hikes by the Federal Reserve, prompting analysts to reassess the prospect of more rate cuts this year.
The rupee fell about 1% to 82.72 per dollar, its biggest percentage fall since September 22.
Crude Impact
Oil prices rose on Monday after falling 8% last week to more than three-week lows as concerns that slower growth in major economies may limit fuel consumption outweighed signs of a demand recovery in China, the world’s top oil importer.
Brent crude futures rose 0.75% to $80.53 a barrel, while US West Texas Intermediate (WTI) crude futures climbed 0.5% higher to $73.75.
(With inputs from agencies)
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Monday, 06 Feb, 2023 - Front Page
- Pure Politics
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Cos May Find it Costlier to Raise Funds Overseas
Indian companies can raise debt from non-residents through two routes. The ECB mechanism is for borrowings in foreign currency. The FPI route is for foreign investment in rupee-denominated debt.
Need More Foreign Investment to Boost Corporate Debt Markets
The other necessary measure for India is to “tighten and improve the bankruptcy law”, according to Kravis, who is one of the most influential voices in the world of private equity.
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