Stock Market Update: After strong U.S. economic data rekindled fears about rising interest rates and a spike in COVID-19 infections in China also impacted risk appetite, Indian shares opened down on Friday.
Stock Market Update: Sensex and Nifty
The Nifty 50 index was down 0.78% at 17,806, breaking through the 18,000 threshold for the first time since November 10. At 59845.29, the S&P BSE Sensex decreased 0.72%.
According to a health expert, China is anticipating a surge in COVID-19 infections within the next week, raising fears throughout the world.
All the sectoral indexes declined
Almost all sectoral indicators had a drop. The pharmaceutical index was the lone exception, rising 1.36% on reports that India is prepared to increase fever treatment exports to China.
44 of the Nifty 50 components experienced a decline. Health-related equities including Cipla, Sun Pharma, and Dr. Reddy’s were among the few that saw gains.
Wall Street equities fell sharply
Wall Street stocks plunged overnight as a result of a higher-than-expected revision to the third quarter’s gross domestic product growth and a smaller-than-expected increase in November’s unemployment benefit claims.
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The report demonstrated a robust economy and stoked concerns that the Federal Reserve would hike rates further and for a longer period of time to combat inflation, increasing the risk of a recession in the process.
U.S. personal consumption expenditures
The Fed’s preferred indicator of inflation, the personal consumption expenditures (PCE) data for the United States, which is due later in the day, now has more significance.
Following the collapse in American stocks, Asian markets also fell, with the MSCI Asia ex Japan index falling by 0.94%.
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