New Delhi After a day’s relief on Wednesday, there was again volatility in the Indian markets on Thursday. Weak macroeconomic data was set to dampen, with retail inflation climbing to a five-month high and a contraction of industrial activity for the first time in 18 months. The Producer Price Index in the US is up 0.4% for the month, higher than expected by 0.2%. , was not encouraging either. Minutes of the US Federal Reserve’s last meeting in September also highlighted its continued focus on inflation control.
By noon on Thursday, the Nifty opened with slight weakness and slipped below 17,000. However, it closed down 0.64% at 17,014.35. Sensex also closed with a fall of 0.68%
According to experts, volatility is likely to continue.
“Retail inflation has remained above desired levels which has been a major cause of concern for the Indian economy. This, coupled with declining industrial output in August, may not bode well for the market as the economy is expected to remain resilient. Against this backdrop, the impending US inflation data, which is projected to remain higher, could lead to volatility in the global market,” said Vinod Nair, Head of Research, Geojit Financial Services. Due to weak rupee and production cut. Rise in crude oil prices remain key risk by Organization of Petroleum Exporting Countries.Inflation numbers remain above acceptable limits of central banks, which could lead to sustained rate hikes in near term.BofA Securities Nifty on weak macros The target has been lowered from 18,500 to 17,500. It said that in the near future, higher crude oil prices, slower global growth and currency devaluation could create a downward spiral of macro risks, leading to a current account deficit. may increase.
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