Morning Snapshot: Sensex Pares Early Losses, Caution on Swiss Rate Hike Advised

  • Stock Market News
Morning Snapshot: Sensex Pares Early Losses, Caution on Swiss Rate Hike Advised

By Malvika Gurung -- Indian equity benchmark indices opened lower on Friday, tracking weak global cues following an overnight fall in Wall Street stocks, as investors fretted over recession fears amid aggressive monetary policy tightening central banks globally to tame the mounting inflation.

Benchmark gauges Nifty50 and Sensex opened 0.76% lower on Friday, later paring some losses and were trading 0.4% and 0.3% in red, respectively, with gains in metal stocks and heavyweights like Reliance Industries (NS: RELI ) supporting the market.

The market fear-barometer India VIX rose 2.25%, while only Nifty Metal among all the sector indices listed under Nifty traded in the green. The losses were led majorly by pharmaceutical, IT and auto stocks, and Nifty Bank traded muted.

On Thursday, the BoE hiked interest rates for the 5th straight time, hitting a 13-year peak, while the biggest surprise to markets globally came after the Swiss central bank announced a 50bps rate hike and stated that it is less worried about currency strength than taming the soaring inflation.

SNB’s rate hike shocked the market, with experts stating, “If the Swiss are worried about inflation, we all should be”.

Investors fear that the rising attempts of central banks to curb inflation could lead to a slowdown in global growth or recession, with the likelihood of the US slipping into recession much higher, as S&P 500’s PE is currently around 16, close to the long-term average, and markets will bottom out earlier than the economy does, states Dr V K Vijayakumar of Geojit Financial Services.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles