After data showing consumer inflation in the world's largest economy stayed stable in January, investors in India's stock market began trading lower on Wednesday due to concerns about a protracted high-interest rate environment in the US.
Fast-moving consumer goods lost about 1%, while eleven of the 13 key sectoral indices decreased.
After statistics revealed that retail inflation in the U.S. increased 6.4% year-over-year in January, exceeding the 6.2% anticipated, the high-weighted IT plummeted over 0.7%. Monthly consumer prices increased by 0.5%.
The U.S. contributes significantly to the revenue of Indian IT companies.
Prashanth Tapse, a research analyst at Mehta Equities, said that the general market attitude is still one of "caution."
32 of the Nifty 50's components had a decrease, with Tata Consultancy Services, Hindustan Unilever, Larsen & Toubro, and Apollo Hospitals among the worst performers.
On Tuesday, Wall Street stocks were neutral, while Asian markets fell. Losing 1.43% was the MSCI's broadest index of Asia-Pacific shares outside of Japan.
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