Market Wrap: Sensex, Nifty extend losses into second consecutive session; investors lose over a lakh crore in a day
Nifty to decline for the second consecutive session while investors directed their attention towards the Jackson Hole symposium in search of indications about the future direction of interest rates. Media reports suggested the dollar held firm near an 11-week peak while the US Treasury yields stabilised below 14-year highs ahead of the US Federal Reserve Chair Jerome Powell's speech at Jackson Hole.
“Fed Chair Jerome Powell is scheduled to speak at 1405 GMT, while European Central Bank (ECB) President Christine Lagarde will be taking the stage at 1900 GMT and investors will be looking for clarity on whether more rate increases are in store and how long the Fed plans to hold rates high," reported Reuters. Powell expected to take into account the recent macroeconomic trends which show the US labour market remains tight and inflation still significantly above its 2 per cent target.
Reuters quoted analysts at Bank of America believe markets may be ill-prepared for a hawkish message from Powell. They pointed out that the recent strong US economic data might make policymakers more worried about inflation rising again.
Read more: US Fed chair at Jackson Hole: What to expect from Jerome Powell's speech today? Sensex opened 252 points lower at 65,000.67 against the previous close of 65,252.34 and remained in the red throughout the session, falling almost 520 points to the intraday low of 64,732.57. The Nifty50 hit the intraday low of 19,229.70.
Sensex closed with a loss of 366 points, or 0.56 per cent, at 64,886.51 while the Nifty50 closed the day at 19,265.80, down 121 points, or 0.62 per cent. (More to come)Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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