Indian Shares Slump On US Rate-hike Worries; IT Stocks Worst Hit
(RTTNews) - Indian shares followed global peers lower on Monday and the rupee hit a record low against the dollar, as Fed Chair Jerome Powell's hawkish remarks in Jackson Hole, Wyoming on Friday weighed on investors' appetite for riskier assets.
Powell declared that the "economy does not work for anyone" without price stability and the central bank would use its tools "forcefully" that could mean slower growth, a weaker job market and "some pain" for households and businesses.
Similar hawkish messages from top ECB officials and climbing oil prices ahead of a crucial meeting of OPEC+ producers this week also dented sentiment, sending key benchmark indexes Sensex and the Nifty down over 2 percent in the early morning trade.
After recouping some early losses, the benchmark S&P/BSE Sensex ended the session down 861.25 points, or 1.46 percent, at 57,972.62.
The broader NSE Nifty index settled at 17,312.90, down 246 points, or 1.40 percent, from its previous close.
IT stocks led losses on valuation concerns as bond yields surged across the world. HCL Technologies, Wipro, Infosys and Tech Mahindra lost 3-5 percent.
Kotak Mahindra Bank declined 2.7 percent after RBI data showed the private sector lender recorded aa many as 5,278 cases of fraud in the first quarter (April to June) of the current financial year (2022-23).
Reliance Industries ended 0.7 percent lower amid the company's AGM.
On the positive side, Nestle India, Maruti Suzuki India and Britannia Industries rose 1-2 percent.
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