Sensex Today: Indian stocks fell in early trading Tuesday, swept up by auto and energy stocks, in global risk-averse sentiment about the impact of high interest rates on economic growth, although gains in IT companies helped hedge losses. The Nifty50 fell more than 50 points near 17,200 levels, and the S&P BSE Sensex fell more than 150 points at 57,800.
Wider markets also moved south as Nifty MidCap 100 and Nifty SmallCap 100 fell to 0.4 percent.
Tata Consultancy Services Ltd has fluctuated between losses and gains after the IT major said it saw some softness in long-term decision-making, though it reported a bigger-than-expected rise in quarterly profits on Monday.
IT service provider Infosys climbed 0.5% after it said late Monday it will consider a share buyback proposal on Thursday, when it reports its quarterly results.
Meanwhile, a Reuters poll found that retail inflation in India accelerated to a five-month high of 7.30% in September on the back of rising food prices, and for a ninth month well above the Reserve Bank’s tolerance limit. India stayed.
The data is expected after market hours on Wednesday.
The Indian rupee closed flat at 82.32 per dollar against its previous closing rate of 82.32.
Equities fell in Asia after a fourth consecutive decline in US equities amid continued concerns that rising interest rates and geopolitical threats will weigh on global growth. Japan’s Topix index fell 1.4%, while South Korea’s Kospi index fell 2%.
Tokyo stocks opened lower on Tuesday after a long weekend, tracking falls on Wall Street as investors brace for more major rate hikes from the US Federal Reserve.
US stocks fell Monday, with the Nasdaq hitting its lowest closing price since July 2020, as investors worried about the impact of higher interest rates and pulled out of chipmakers after the United States announced restrictions to hinder China’s semiconductor industry.
Oil prices fell on Tuesday, adding nearly 2% to losses in the previous session, as a stronger US dollar and a flare-up of COVID-19 cases in China fueled fears of a slowdown in global demand. Brent crude futures fell 57 cents, or 0.6%, to $95.62 a barrel at 0031 GMT, after falling $1.73 in the previous session.
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