Global investors are taking a cautious approach ahead of the US Federal Reserve’s policy decision on Wednesday. It is feared that the Federal Reserve may increase the policy rate to control rising inflation. The 30-share BSE Sensex closed at 52,693.57, down 153.13 points, or 0.29 per cent. This is the lowest level of the Sensex since July 30, 2021. The Nifty of the National Stock Exchange also closed at 15,732.10, down 42.30 points, or 0.27 per cent.
The biggest fall in these stocks
IndusInd Bank was the biggest loser among Sensex stocks, down 2.12 per cent. Apart from this, Tech Mahindra, Reliance Industries, Maruti, HDFC Ltd., HDFC Bank, Asian Paints and HUL were the main losers. Reliance Industries, HDFC Ltd. in most of the decline in the market. and HDFC Bank contributed.
These shares climbed even in the falling market
On the other hand, among the gainers, Bharti Airtel was the biggest gainer, rising 1.63 per cent. Apart from this, NTPC, UltraTech Cement, Mahindra & Mahindra, Infosys, Dr Reddy’s and L&L were also gainers up to 1.61 per cent.
Why did the stock market fall?
Vinod Nair, Head of Research, Geojit Financial Services said, “Heavy selling in the domestic market was curbed. This is because of softening of retail inflation on a monthly basis in May amid global volatility. The market is cautiously awaiting the outcome of the Federal Reserve meeting tomorrow.
Retail inflation decreased, wholesale inflation increased
According to official data released on Monday, retail inflation moderated to 7.04 per cent in May, mainly due to moderation in food and fuel prices. However, wholesale price-based inflation rose to a record 15.88 per cent in May due to rise in crude oil prices and rising heat and sharp rise in prices of fruits and vegetables. This has raised fears of the Reserve Bank of India raising the policy rate in the monetary policy review in August.
There is also pressure from the US Federal Reserve
Religare Broking Ltd. Ajit Mishra, Vice President (Research) of the company said, “The market closed with a slight decline in volatile trade. After a mild opening, the market saw gains several times but it did not escape the selling pressure.
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What’s up in the rest of the world
In other Asian markets, South Korea’s Kospi, Japan’s Nikkei ended in losses, while Hong Kong’s Hang Seng and China’s Shanghai Composite ended in gains. Markets in Europe declined in afternoon trade. Meanwhile, international oil benchmark Brent crude rose 0.68 per cent to USD 123.1 per barrel.
Rupee gains marginally
The rupee exchange rate ended with a marginal gain of one paise at 78.03 (tentative) against the US dollar. The rupee had hit an all-time low on Monday. According to stock market data, Foreign Institutional Investors (FIIs) were net sellers in the capital market. He sold shares worth Rs 4,164.01 crore on Monday.