Sensex is drop by 1.1%, increasing inflation a forthcoming concern
Sensex and Nifty Points
Policy tightening, which signifies a rate hike, is dangerous to the Indian market as investors typically choose the U.S. markets to get higher returns. At 9.32 a.m. Sensex was down by 1.1 percent and steady at 56,582 points. In contrast, the Nifty was at 16,988 points, down 1.1 per cent.
Also Read : The Benefits of Personal Loan
Statement of Chief Investment Strategist at Geojit Financial Services
"Markets are apprehensive about the increasing hawkish statements from the Fed, which show higher-than-expected rate hikes by the Fed this year. There are matters that aggressive financial tightening might even drive the U.S. economy into a slump in 2023. V.K. Vijayakumar, The Chief Investment Strategist at Geojit Financial Services said that these apprehensions influence risky accessions.
Furthermore, the statement of Vijayakumar expressed "India cannot be resistant to a potential global market modification. But India is rather resilient. Monetary tightening in India would be mild compared to the U.S.,"
Particularly, Consumer Price Index or retail inflation in India is registered as the steeply increasing in March to 6.95 per cent. The percentage of Consumer Price Index and retail inflation point was above the Reserve Bank of India's upper forbearance band of 6 per cent for three successive months in a row.