By Malvika Gurung
Investing.com -- A hotter-than-expected US inflation reading has sent tremors across world markets, with emerging markets like India affected more.
Indian equity benchmarks snapped their three-day winning streak and suffered sharp losses on Friday, on fears of over 5 aggressive rate hikes by the Fed in the following year.
Investors on Dalal Street had lost over Rs 3.4 lakh crore wealth in early trade, and by the end of the session on Friday, they were left Rs 4.01 lakh crore poorer.
All sectoral indices ended in red, driven by Nifty IT sliding 2.7% lower, led by Larsen & Toubro Infotech (NS: LRTI ), Coforge (NS: COFO ) and L&T Technology (NS: LTEH ) dropping 4.2-5%. Nifty Bank ended 1.27% lower, while Nifty PSU Bank and Nifty Realty slid about 2% each.
US consumer inflation surged 7.5% in January, its worst/biggest inflation reading in 40 years, since 1982. Experts believe that the worse-than-expected inflation figure will lead to the Fed hiking interest rates by at least 100 basis points in the year.
Even a 50 bps hike in March would lead to a sharp correction in global markets, stated the Chief Investment Strategist at Geojit Financial Services.
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