Home / Business and Economy / Nifty, Sensex Plunge 2% as US Inflation Data Nears
Nifty, Sensex Plunge 2% as US Inflation Data Nears
11 Sep
Summary
- Indian markets saw a 2% weekly fall, with Nifty below 23,400.
- US futures rose slightly before August CPI data release.
- Oil prices exceeded $100 a barrel amid shipping disruptions.
Indian equity benchmarks, the Sensex and Nifty, concluded the week with a notable 2% decrease, marking the fifth consecutive weekly fall for the Nifty. The Sensex saw a decline of approximately 100 points, while the Nifty traded below the 23,400 level. Market breadth remained weak, and the India VIX, a measure of volatility, jumped 4%.
The Realty sector led the losses, with metal and auto stocks also under pressure. India's 10-year bond yield surpassed 7%, reaching a three-month high. Top Nifty 50 gainers included DRL, HCL Tech, and Tech Mahindra, while JSW Steel, Hindalco, and Tata Steel were among the biggest laggards.
Globally, US futures edged higher as investors awaited the August CPI data, though US indices like the Dow and Nasdaq were set for weekly losses. The US 10-year Treasury yield climbed to its highest point since October 2023. Asian markets experienced widespread declines, with significant drops in the Nikkei, Kospi, and Hang Seng.
Oil prices were poised to finish the week above $100 a barrel, a four-month high, with Brent crude cooling from its peak. Concerns over global oil supplies were exacerbated by Houthi rebels seizing Yemen's Port of Mocha and restrictions on Gulf shipping traffic following tanker attacks.
