Mumbai, First Published May 6, 2022, 3:51 PM IST
Mumbai and national stock markets ended lower for the third day in a row today on the back of US Federal Reserve raising interest rates and a slump in international markets.
Federal Bank
The US Federal Reserve is taking steps to control unprecedented inflation in the United States. It had already raised interest rates by 25 points last March, up 50 points from yesterday.
But economists say the rise in interest rates is not enough to curb rising inflation in the United States. The US Nasdaq ended lower on fears that interest rates could rise further in the coming months.
Investment outflow
As the Federal Reserve continues to raise interest rates, the stock market has plummeted as foreign investors who have invested in the Indian stock market are recouping their investment. According to SEBI data, foreign investors sold shares worth Rs 2,074 crore on Thursday alone.
Trading there ended in a slump, with the Asian stock market echoing the US stock market crash. Stock markets in Hong Kong, Shanghai, Tokyo and Korea also ended lower today.
Repo Rate Rise
The Reserve Bank of India (RBI) yesterday hiked interest rates by 40 percentage points to curb rising inflation in India. The stock market had a bad decline that day. However, the stock market declined in the afternoon and ended the evening with a fall, despite a positive start to the day. Investors were skeptical of this information and were interested in selling the shares.
The fall continued
As a result, the Sensex fell by 1000 points in the morning on the Bombay Stock Exchange and the Nifty fell by 261 points. The stock market was volatile throughout today’s trade.
The Bombay Stock Exchange benchmark Sensex fell by 762 points to close at 54,940 at the end of the evening trade. At the National Stock Exchange, the Nifty was down 242 points at 16,440.
Beat the Bajaj Twins
Of the top 30 sectors on the Mumbai Stock Exchange, only 7 companies ended with gains. Techmakindra, Power Grid, ITC, NTPC, Tata Steel and Sun Pharma gained. Shares of Wipro, Ultratech Cement, IndusInd Bank, Tata Steel, Infosys, HCL, Titan and HDFC were the biggest losers.
Shares of Divis Labs, Bajaj Accounting, Pinserv, Shree Cements, UPL and Tata Motors ended lower in the Nifty. Shares of Bajaj Pinserv and Bajaj Accounting, in particular, fell 4 per cent. At the Nifty, consumer metals, real estate, and IT fell 3 percent each. The power sector grew by 0.5 per cent
Last Updated May 6, 2022, 3:51 PM IST