New Delhi Equity markets buoyed fears of aggressive rate hikes in the US, which were stronger than expected employment data.
The Sensex could not hold the 58,000 mark and closed down 0.34% at 57,991.11. Nifty closed down 0.43%.
US unemployment data indicated that the labor market was still tight and thus could prompt US unemployment data to begin another round of aggressive rate hikes. Earlier, weak manufacturing data had comforted markets that the US may be slow on rate hikes.
“Fears of aggressive rate hikes by the Fed based on strong employment data disrupted global equities trend. Inflation in the US is expected to remain high given short supply and high demand scenarios,” said Vinod Nair, Head of Research, Geojit Financial Services. Have an estimate.”
According to Nair, in order to bring some parity to the economy, the Fed would have to target low demand by increasing the unemployment rate, which is not influenced by the market.
Higher rate expectations impacted US bond yields, putting pressure on the rupee, while rebounding in crude oil is also not favourable. Rising crude oil prices and depreciating rupee are increasing the risk of imported inflation in India, affecting the domestic market.
Brent has risen above the low of $ 83.33 per barrel on September 26 at $ 97.33 per barrel.
Sugandha Sachdeva, Vice President, Commodity and Currency Research, Religare Broking Ltd. said that the risky market environment and the Fed’s restrictive policy stance have driven the rupee to a record low. The US employment rate is picking up on the US dollar, but has suppressed the rupee.
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