Stock market indices fell as US jobs data loomed, which could indicate a future Federal Reserve rate hike. Reports indicate that 2,85,000 US jobs were added last month and the unemployment figure stood at around 3.5 percent. Investors fear that strong employment data could signal further rate hikes by the Federal Reserve.
The National Stock Exchange’s Nifty 50 index fell 0.02 per cent to 17,539 points, while the Bombay Stock Exchange’s Sensex rose 0.06 per cent to 58,803.33 points.
Adani Enterprises, the flagship of the Adani Group, climbed 118.75 points to hit a record high of 3,352 after being included in the Nifty 50 index.
On the other hand, Shree Cement fell 2.3 per cent to 21,088.4. This was one of the worst drags on the Nifty 50 index and after the fact, NSE said that the stock would be removed from the Nifty 50 index from 30 September.
“Markets are technically in overbought territory. Markets will remain under pressure from China-Taiwan headlines and US jobs data will be significant,” Reuters news agency said. Prashant Taapsee – Research Analyst, Senior VP (Research), Mehta Equities Ltd said.
“Domestically, the data remains strong. We will see inflation cooling down, crude oil prices below $90 a barrel, and that will help stabilize the markets,” says Taapsee.
As of Thursday, about $534.34 million of foreign investor inflows worth $776.86 million were invested in the trading session alone.
Monetary Policy Committee member JR Verma has said that the success of RBI’s interest rate hikes to control inflation is still unclear, and the pace of rate adjustments will depend on the state of the economy.
With inputs from Reuters
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