Indian equities

Tightening lockdowns in China to curb Covid spread also weighed on the market sentiment. "The relentless rise in the US dollar index owing to interest rate hikes and rising US treasury yield hammered investor's risk appetite. Strong US jobs data indicated possibilities of faster rate hikes forcing investors to opt for safe-haven assets," said Vinod Nair, Head of Research at Geojit Financial Services.

Asian markets started the fresh week on a volatile note as the US stocks took a hit on interest rate worries. At 9.28 a.m., Sensex was 801 points or 1.5 per cent down at 54,034 points, whereas Nifty 242 points or 1.4 per cent down at 16,168 points. "The latest U.S. jobs data cemented expectations the Federal Reserve will remain on its rate-hike path to combat stubbornly high inflation," said Deepak Jasani, Head of Retail Research, HDFC Securities.

The recent pullout was triggered due to an aggressive rate hike by the US Federal Reserve, which is a negative for Indian investors. Analysts say foreign flows are likely to remain volatile in the near term amid the high prospect of aggressive rate hikes globally and the headwinds in terms of higher crude prices, and rising Inflation. FPIs remained net sellers for seven months to March 2022, withdrawing a massive net amount of Rs 1.65 lakh crore from equities.

Asian stocks fell over concerns that the US central bank and some other major central banks will have to raise interest rates even more aggressively to check inflation. In India, the benchmark Sensex fell 866 points, or 1.6 per cent, to close the day at 54,836, and Nifty declined 271 points, or 1.6 per cent, to 16,411 points.

Asian stocks fell over concerns that the US' central bank and some other major central banks will have to raise interest rates even more aggressively to check inflation. All Nifty sectoral indices traded in the red in the morning session. Benchmark Sensex was at 54,666 points, down over 1,000 points or 1.9 per cent, whereas Nifty at 16,376 points, down over 300 points or 1.8 per cent.

In a surprise and unscheduled move, the central bank raised the repo rate by 40 basis points (bps) to 4.40 per cent. The US Federal Reserve is also expected to raise rates at its ongoing policy meet to fight the prevailing higher inflation. Following the RBI announcement, the Sensex declined 1,307 points, or 2.29 per cent, and settled at 55,669 points, whereas Nifty fell 392 points, or 2.29 per cent, to 16,678 points.

At 9.19 a.m., Sensex was at 56,680 points, down 0.7 per cent, whereas Nifty was at 16,990 points, down 0.7 per cent. Among the stocks, Titan was the top loser, declining 2.7 per cent. Mohit Nigam, Head - PMS, Hem Securities, said it is the worst monthly slide in the US markets after April 2020.

Domestic market reduced exposure ahead of the shortened next week and opening of India's largest IPO, he said. Besides, dips are encouraging investors to accumulate quality stocks with focus on defensives and domestic growth sectors like manufacturing and capital goods. On Friday, Sensex closed at 57,061 points, down 0.8 per cent or 460 points, while Nifty ended at 17,102 points, down 0.8 per cent or 142 points.

At 9.46 a.m., Sensex was 0.3 per cent up at 57,668 points, whereas Nifty was 0.1 per cent up at 17,263 points. Even though the indices are in the green, analysts expect volatility to continue in Dalal Street.

On Thursday, Sensex settled at 57,521 points, up 702 points or 1.2 per cent, whereas Nifty was at 17,245 points, up 207 points or 1.2 per cent. Even though the indices were in the green, analysts expect volatility to continue in Dalal Street.