India's equity indices Sensex and Nifty extended their losses from the previous week and tumbled sharply on Monday on cues of high inflation-triggered sell off in the US.
With the possibilities of even more aggressive policy tightening by the Federal Reserve, several Asian markets opened low on Monday, while the Indian indices declined for six out of seven sessions last week.
On Monday, at 9.42 a.m., Sensex was 2.51% or 1,365.02 points down at 52,938.42 points, whereas Nifty 2.6 per cent or 419 points down at 15,782 points. By 11:25 a.m., Sensex was hovering around 52,938.42 or 1,365.02 (2.51%) points down, while Nifty was 15,816.20 or 385.60 (2.38%) points down.
"The near-term market trend is weak. The May US inflation print at 8.6 per cent against the market expectation of 8.3 per cent is likely to turn the Fed more hawkish with a series of 50 bp rate hikes taking the terminal rate by mid 2023 above 3.5 per cent. Such a scenario would be negative for risky assets like equity, particularly in the context of declining global growth," V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services told IANS.
Most other Asian stocks also declined on Monday.
