Indian shares fall nearly 2% on concerns over rate hikes

Record ID: 1671617

  • Title: Indian shares fall nearly 2% on concerns over rate hikes
  • Date: 6th May 2022
  • Summary: MUMBAI, MAHARASHTRA, INDIA (MAY 06, 2022) (ANI- No use India) VARIOUS OF BOMBAY STOCK EXCHANGE (BSE) BUILDING PEOPLE WALKING OUTSIDE BSE GUARD STANDING TICKER SHOWING STOCK MOVEMENT (SOUNDBITE) (English) STOCK MARKET EXPERT, SUNIL SHAH, SAYING: "The…the oil prices, the Brent Crude is now $110 plus so, that's a negative news. Also, the interest rate hike by the Fed and th
  • Embargoed: 20th May 2022 10:32
  • Keywords: Bombay Stock Exchange India Mumbai Nifty Sensex oil stocks
  • Location: MUMBAI, MAHARASHTRA, INDIA
  • City: MUMBAI, MAHARASHTRA, INDIA
  • Country: India
  • Topics: Asia / Pacific,Economic Events
  • Reuters ID: LVA001GAUS6Z3
  • Aspect Ratio: 16:9
  • Story Text: Indian shares dropped nearly 2% on Friday (May 06) and were set for their worst week since November, as investors fretted that fast-paced interest rate hikes to tame surging inflation would slow global economic growth.
    The NSE Nifty 50 index was down 1.82% at 16,378.55, as of 0503 GMT, with all sectors trading in negative territory. The S&P BSE Sensex fell 1.78% to 54,709.18.
    The benchmark indexes were on track for a fourth straight weekly drop, shedding more than 6%, weighed down by a surprise interest rate hike by the Reserve Bank of India, foreign fund outflows and mixed corporate earnings results.
    So far this week, foreign investors have net sold Indian equities worth $635 million, compared with $881 million offloaded in the same period last week, according to Refinitiv data.
    The Fed on Wednesday (May 04) raised interest rates by half a percentage point as expected and Chair Jerome Powell explicitly ruled out a 75 basis point hike in the next policy meeting.
    On the Nifty index, metal, IT, bank, auto and finance were among the top losers, declining between 2% and 3%.
    Among individual stocks, Reliance Industries, India's most valuable company, was down 0.8%. The oil-to-retail conglomerate is expected to report its quarterly results later in the day.
    Cigarettes-to-hotel conglomerate ITC Ltd was the top percentage gainer on the Nifty 50, climbing more than 1%.
    Asian stocks fell over concerns that U.S. Federal Reserve and some other major central banks will have to raise interest rates even more aggressively to combat red-hot inflation.
  • Copyright Holder: ANI (India)
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