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In continuation of the bearish trend, the stock markets are witnessing sell off and the frontline indices have come under pressure. The Indian rupee has also seen sharp depreciation since the morning against the U.S. Dollar.ย
The S&P BSE Sensex after a weak opening fell about 700 points before recovering possibly due to buying by domestic institutions. At the time of writing of this report the Sensex was down 380 points at 77,008 points led by fall in Zomato, M&M, PowerGrid, Tata Steel and Adani Ports.
The NSE Nifty-50 index too was seen at 23,292 level having dropped by 140 points.
The Indian Rupee also plunged sharply by over 32 paisa and was trading at 86.36 to an U.S. Dollar as compared to its previous close of 86.04 at the forex retail spot market.ย
According to analysts the market opened week due to sharp declines across global markets, triggered by the anticipation that the U.S. Federal Reserve could delay interest rate cuts.ย
โThis, combined with ongoing Foreign Institutional Investor (FII) selling and a surge in oil prices to a 4-month high above $81 per barrel, is weighing on sentiment,โ saidย Vikas Jain, Head of Research at Reliance Securities.
U.S., European, and Asian markets fell by up to 1.5% after stronger-than-expected US jobs data increased the likelihood of the Fed pausing interest rate cuts.ย
Additionally, the U.S. unemployment rate dropped, pushing the U.S. 10-year bond yield to a one-year high of 4.7%, while the US Dollar Index surged to a 14-month high above the $109 level, creating uncertainty around potential rate cuts by the Fed.ย
The latest round of US sanctions on Russiaโs energy industry also contributed to the rise in oil prices, a concern for India, a major oil importer, Mr Jain said.
On Friday, the domestic market fell by nearly 0.5%, impacted by the persistent FII selling and weak global market conditions.
Published – January 13, 2025 10:20 am IST
