Market Brief: Nifty, Sensex Recoup Early Losses, VIX Surges, Nifty IT Tanks

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Market Brief: Nifty, Sensex Recoup Early Losses, VIX Surges, Nifty IT Tanks
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The domestic market crashed on Wednesday amid glum cues from global markets after white-hot inflation in the US for August sent shockwaves across markets globally. 

Indian equity benchmark indices Nifty50 and Sensex opened deep in red, shedding up to 1.3% each in early trade, as higher-than-expected US CPI data fuelled concerns of an ultra-hawkish monetary policy by the Fed.

As the session progressed, the headline indices recouped early losses and were last seen trading up to 0.4% lower.

At the time of writing, all sectoral indices listed under the Nifty umbrella except Nifty IT and Nifty Realty were trading in the green, recovering all the losses earlier in the day. Nifty IT tanked 3.15%, while Nifty Bank traded 1.26% higher.

The volatility barometer India VIX surged 4.6% to 18.3 while writing.

The US dollar neared a 24-year high against the yen as US yields jumped on bets for an even aggressive monetary tightening by the Fed next week. The Indian rupee depreciated 0.13% compared to the greenback, trading at 79.47/$1.

“The worse-than-expected CPI inflation data in the US, despite cooling gas prices, was a surprise. Now the market fears that inflation is getting entrenched and an ultra-hawkish Fed might trigger a hard landing for the US economy,” said V K Vijayakumar of Geojit Financial Services.

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  • Ramji Singh @Ramji Singh
    I won't think FED would inhance >75 basis point. The market is engulfing the sentiment quickly and in couple of days it will take it usual course
    Like 0
  • Ramji Singh @Ramji Singh
    I won't think FED would inhance >75 basis point. The market is engulfing the sentiment quickly and in couple of days it will take it usual course
    Like 0

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