CPI data helps in mitigating stock market losses
The Indian stock markets remained under selling pressure on Tuesday, but better-than-expected CPI data released on Monday reduced losses compared to the previous session.
The S&P BSE Sensex closed 153 points or 0.29% lower at 52,693.57. The top losers included IndusInd Bank (2.37%), Tech Mahindra (2.08%), Reliance (1.33%), HDFC Bank (1.24%), HDFC (1.23%) and HUL (1.08%).
The NSE Nifty 50 index also closed at 15,732.1, down 42.3 points or 0.27%.
“domestic market” [was] Vinod Nair, Head of Research, Geojit Financial Services, said, “The CPI data on a month-on-month basis was restrained by heavy selling and had a calming effect amid global volatility.”
“However, advanced WPI data dominated the broader market, which is cautious, awaiting the Fed policy outcome on Wednesday. Earlier, global markets were forecasting a 50 basis point increase, but now due to persistent US inflation. Concerned about high rate growth.
The Indian rupee also remained under pressure and closed slightly stronger than Monday’s close, which was its all-time low.
Sugandha Sachdeva, Vice President, Commodity and Currency Research, Religare Broking Ltd said that the Indian Rupee was on a downward trajectory since the beginning of the year and has depreciated around 5% so far in 2022.
“Along with rising crude oil prices, the main culprit behind the depreciation of the rupee against the dollar is the sharp rally in the greenback, which has risen almost 10% year-on-year towards a new two-decade peak,” he said. Told. ,
“The US dollar continues to see safer investments as market participants continue to face rapid-fire rate hikes by the US Fed in its fight against inflation, which has increased the risk of a growth slowdown,” he said. “
“This is leading to massive capital outflow from domestic equities. In its fight against scorching inflation, the US Fed may consider raising the interest rate by around 75 bps in its June meeting, which will be a major headwind for the rupee in the near term,” she said.