oppn parties US Fed Commentary Spooks Stock Markets

News Snippets

  • FIH Pro League hockey: Indian men beat Argentina 5-4 while women lose to same opponents by 0-5
  • World Cup Stage II archery: Indian women's team enters final. Men's team eliminated
  • Malaysia Masters badminton: P V Sindhu enters second round
  • IPL: RR beat RCB to get another shot in Qualifier 2. RCB out of IPL
  • Referring to sandeshkhali, PM Modi says TMC blaming women to save its goons. TMC asks why Modi was silent for 15 days since the sting videos came out
  • A teenager, who was seen voting eight times for the BJP in a viral video, was arrested after Rahul gandhi and Akhilesh Yadav shared the video on their social media pages
  • The minor son of a builder in Pune, driving a Porsche, runs over two techies on a motorbike. He was arrested but granted bail with conditions by the Juvenile Board
  • PM Modi says action against the corrupt will intensify after June 4 when the NDA returns for the third term
  • Buying of wheat likely to corss 2023 mark but may miss target set for 2024
  • Arvind Kejriwal says BJP has plans to lock AAP offices and freeze the bank accounts of the party
  • Sharad pawar says PM Modi has lost confidence, MVA will win 50% seats in Maharashtra
  • FP|Is offloaded Rs 28200cr in equities in May
  • Former SBI chariman Rajnish Kumar and former Infosys CEO Mohandas Pai will step down from Buju's advisory council
  • Government to tighten norms to ensure better service from telcos
  • Banking sector net profit crosses Rs 3L cr for the first time in FY24
IPL playoffs: RR beat RCB by 4 wickets to end their dream run in the IPL. RR will meet SRH to decide the second finalist. KKR has already reached the final.
oppn parties
US Fed Commentary Spooks Stock Markets

By Ashwini Agarwal
First publised on 2022-01-27 08:13:09

Stock markets crashed once again on Thursday in early trades due to the US Fed decision to raise interest rates from March and the hawkish stance adopted by the chairman Jerome Powell. The markets fear that if US interest rates are hiked, there will be huge outflows of foreign funds. Hence, the markets came under selling pressure.

The Sensex crashed 1400 points as foreign funds sold equities but recovered as Indian buyers propped it up by buying at lower levels. The Sensex recovered more than 400 points by 1 pm. But the overall sentiment is negative.

The other factors that are spooking the markets include mixed Q3 results, pre-budget jitters, rising crude prices and geopolitical tensions. Investors are not convinced about economic recovery and the poor results of auto major Maruti and other companies have further eroded confidence. Operators are also worried about what the budget holds in store, with income and wealth disparities grabbing headlines in recent days. Further, crude prices crossed the $90 mark today, raising fears of rise in pump fuel prices and further inflation in India. Lastly, the stand-off between Ukraine and Russia sees no signs of a cool-off and the Russian build up on the Ukraine border signals a possible invasion. The US and Nato forces are preparing for that eventuality.

All this is taking a huge toll on equity prices and creating a panic amongst investors. For an emerging market like India, such volatility in stock markets is not good for both the investors and companies hoping to raise capital through IPOs. It erodes investor confidence and makes for negative sentiments. The market is not expected to stabilize before the budget and investors are advised caution.