News

Published: Mar 11, 2023
Updated: Mar 11, 2023

Sensex Drops over 900 Points in early trade on Concerns of Prolonged High Interest Rates

The Indian stock market saw a bloodbath in early trade on Friday, with benchmark indices falling over 1% amid concerns over the prolonged impact of high interest rates on economic growth. The S&P BSE Sensex was down 699.91 points at 59,106.37 at around 9:25 am, while the NSE Nifty 50 fell 194.10 points to 17,395.50. By 9:45 am, Sensex was down over 900 points, while the Nifty 50 fell 250 points.

Broader Market Reflects Weakness as Volatility Spikes

The market's weakness reflected in the broader indices as well, with volatility spiking sharply. All sectoral indices were trading in negative territory, with Nifty Bank, Nifty Metal, Nifty IT, and Nifty Financial emerging as the top losers. Only 5 of the 50 shares listed on the Nifty 50 were trading in positive territory, with Britannia and Tata Motors climbing over 1%. The other gainers were Bajaj Auto, Sun Pharma, and Bharti Airtel.

Adani Enterprises Plummets over 5%

Adani Enterprises was the top index loser, shedding over 5% in early trade. IndusInd Bank, HDFC, HDFC Bank, ICICI Bank, L&T, and Adani Ports also emerged as top drags. Investors remain worried about the prospect of prolonged high interest rates.

Analysts Predict Volatile Markets for 3-6 Months

Market analysts predict markets to remain volatile for at least 3-6 months in the wake of evolving global trends, especially interest rates that have been high for a prolonged period.

US Jobs Data Release to Provide Insight into Fed's Next Move

Investors will be looking for some comfort today with the release of US February jobs data, which will indicate if the Federal Reserve's aggressive monetary policy managed to support the economy. Nonetheless, market players will be closely monitoring the situation and re-evaluating their positions accordingly.

Concerns over prolonged interest rate hikes cause panic selling in markets

The Indian stock market is experiencing a significant downturn due to concerns over prolonged high interest rates. The market's weakness reflects in the broader indices, and market analysts predict volatile markets for the next 3-6 months. Investors will closely monitor the US jobs data release to gain insight into the Federal Reserve's next move.