Inflation Fears Snap Markets Rally; US Futures Down

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Inflation Fears Snap Markets Rally; US Futures Down

By Aditya Raghunath

Investing.com -- The three-day rally in Indian markets snapped today on fears of global inflation. Nifty 50 and the BSE Sensex 30 closed lower by 0.52% and 0.58% respectively as financial stocks saw weakness.

Nifty Bank ended lower 0.7% while Nifty Financial Services index dropped 0.98%. Tata Motors Ltd (NS: TAMO ) also suffered after reporting a surprise loss of nearly Rs 7,600 crore after-market hours on Tuesday.

Coal India Ltd (NS: COAL ) gained 3.45% followed by Cipla Ltd. (NS: CIPL ) at 2.05%. Sun Pharmaceutical Industries Ltd. (NS: SUN ) was next on the gainers' list, moving up 1.94%.

Market experts said the correction could have been a lot worse but the decreasing number of COVID cases helped investors sentiment even as markets around the world fall.

Nikkei 225 and the Shanghai Composite closed lower 1.28% and 0.51% respectively. China's central bank refreshed its ban on cryptocurrency trading, with new measures designed to close loopholes that have become increasingly popular with the Chinese public. Bitcoin crashed to less than $40,000, the first time it has dropped to this level in 14 weeks.

US stocks are set to open lower again later, spooked by the renewed sell-off in crypto-assets and a fresh rise in US bond yields. Dow Jones 30 Futures are trading down 0.65% while S&P 500 Futures and Nasdaq 100 Futures are down 0.82% and 1.2% respectively.

The increasing popularity of crypto assets with retail investors – the crypto universe had a market cap of over $2 trillion at the start of the week - raises the risk of forced selling and increased risk aversion with regard to other asset classes.

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  • Amit Kumar @Amit Kumar
    Correction will be there tomorrow..
    Like 0
  • sarvesh kasat @sarvesh kasat
    Where was inflation 2 days back when market was rallying?Stop such shallow analysis on market.
    Like 7
    • S S Sss @S S Sss
      these so called market analysts can bring any reason to suit their narrative .. they can even blame Bidens prostrate problem as a cause for NASDAQ fall ..
      Like 2
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