Financials drag Sensex 307 points lower post RBI’s hawkish note on inflation
The 30-share Sensex fell 307 points to settle at 65,688, while the broader Nifty ended at 19,543. Sectors sensitive to domestic interest rates like banks and financial services stocks were among the top losers as Nifty Bank fell 0.76%.
Meanwhile, FMCG index lost 0.91%, followed by Pharma, which was down 0.74%. Among the individual stocks, shares of ZEEL soared 16% after NCLT approved a merger with Sony, dismissing all the objections.
Max Financial Services closed nearly 8% higher after Axis Bank received approval to infuse Rs 1,612 crore in the insurer. From the Sensex pack, IndusInd Bank, JSW Steel and Titan were the top gainers, while on the other hand HDFC Bank, Tata Motors and Nestle India declined the most.Expert Views Market analysts say inflation concerns have resurfaced in the domestic market after the RBI elevated CPI forecast, thereby increasing the chances of a protracted rate cut trajectory.
«The RBI's move to control liquidity through incremental CRR dented the sentiments of the banking sector, although the impact is projected to be limited,» said Vinod Nair, Head of Research at Geojit Financial Services. Going forward, investors will closely track US inflation print due to be released later in the day and the domestic inflation data on Monday.Global Markets Global benchmarks mostly rose on Thursday as investors braced for a highly anticipated US inflation report.
Meanwhile, Asian shares are trading near two-week low on China deflation concerns. The MSCI's broadest index of Asia-Pacific shares outside Japan was last down 0.1% and looked set to log a second straight week of losses.Rupee gains The Rupee appreciated 15 paise to close at 82.70 (provisional) against the US dollar, tracking the weakness in
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