NEW DELHI: Highest inflation surge in 40 years in the US had a cascading effect on world markets, including India, on Friday, as investors tried to price in bigger and more frequent interest rate hikes now.
Goldman Sachs now expects seven 25 basis point interest rate rises from the US Federal Reserve this year, up from its previous forecast of five. Though the Indian central bank has refrained from any monetary tightening, any Fed rate hike will create pressure in RBI as well.
The 30-share pack Sensex dropped 773.11 points or 1.31 per cent to close at 58,152.92. Its broader peer NSE Nifty fell 231.10 points or 1.31 per cent to 17,374.75. Both indices napped three-day winning run.
“Aggressive FII selling resulting from negative global cues wreaked havoc in the domestic market today. Globally markets traded in red amid mounting concerns of surging US inflation which fuelled fears of a hawkish rate hike by the central bank,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Indian equity market is likely to open lower today as SGX Nifty fell 160 points to 17,436. On Thursday, market surged for the third straight session amid positive global cues. Sensex closed 460 points higher at 58,926 and Nifty rose 142 points to end at 17,605.
Tata Steel was the top Sensex gainer, rising 2.11 per cent, followed by Infosys, HDFC Bank, HDFC and Kotak Mahindra Bank.
Here’s a look at stocks that are likely to remain in news today.
Shares of Ashok Leyland, Divi’s Laboratories, India Cements, Jet Airways (India), Motherson Sumi Systems, NHPC, Oil India, ONGC, Sobha and Voltas are in focus as these companies will announce their quarterly earnings today.
Hero MotoCorp: The world’s largest manufacturer of motorcycles and scooters reported a decline of 36.7 per cent in its net profit at Rs 686 crore in the quarter ending 31 December, 2021. The automaker had posted a net profit of Rs 1,084 crore in the year-ago period.
Mahindra & Mahindra: The automaker said the company has no plans to be in the electric two-wheeler space in India. The Mumbai-based company saw a 57 per cent growth in net profit to Rs 2,484.24 crore in the third quarter from Rs 1,268 crore reported a year ago.