0
0
It was a complete rout on Dalal Street on June 13, with the benchmark indices sliding 3 percent and eroding nearly Rs 7 lakh crore of investor wealth on a single day, getting the week off to a bad start.
US inflation in May at a 40-year high of 8.6 percent and US treasury yields at 3.19 percent worried investors the most globally as the Federal Reserve seems to be turning more aggressive in rate hikes this week.
After US inflation data, some global analysts changed their stance, expecting the Fed to hike the funds rate by up to 75 basis points instead of a 50 bps hike earlier. Fed chair Jerome Powell’s commentary on June 15 night will be the most important factor to watch out for this week.India’s consumer price data for May is scheduled to be released later in the day, which is expected to be 7.1-7.3 percent against 7.79 percent in the previous month. These factors seem to indicate that the worst is still not over.“Equity markets across the globe are witnessing a sell-off after US May inflation data accelerated to a four-decade high, which raised concerns about aggressive rate hikes by the US Fed in the upcoming monetary policy meet,” said Hemang Jani, head of equity strategy at Motilal Oswal Financial Services.
Average Rating