Sensex, Nifty Tumble On US Rate Hike Uncertainty
(RTTNews) - Indian shares fell sharply on Friday amid uncertainty over how big will future U.S. rate hikes be.
Treasury yields jumped and the dollar held near a one-month high after three Fed policymakers took a hawkish tone on interest-rate hikes.
St Louis Fed president James Bullard said he expects a third straight 75-basis-point interest rate hike in September, while San Francisco Fed colleague Mary Daly said that raising rates by 50 or 75 basis points next month would be "reasonable".
Kansas City Fed president Esther George noted that the drop in inflation registered in July was not evidence the underlying problem was fixed.
Inflation worries also returned to the fore after data showed Germany's producer price inflation accelerated unexpectedly to a new record high in July, primarily driven by higher energy costs.
The benchmark S&P BSE Sensex ended the session down 651.85 points, or 1.08 percent, at 59,646.15 while the broader NSE Nifty index settled at 17,758.45, down 198.05 points, or 1.10 percent, from its previous close.
Tata Motors, Tata Consumer Products, Bajaj FinServ, Apollo Hospital Enterprise and IndusInd Bank fell 3-4 percent in the Nifty pack, while Adani Ports soared 4.4 percent after the government introduced the Draft Indian Ports Bill, 2022, for public consultation.
Larsen & Toubro climbed 2.1 percent after Credit Suisse maintained its 'outperform' call on the stock.
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