Rate, inflation worries set Indian shares for worst week since May 2020
India Today
Indian shares slipped in volatile trade on Friday and were on course for their worst week in over two years.
Indian shares slipped in volatile trade on Friday and were on course for their worst week in over two years, hit by worries that rapid increases in policy rates targeted at taming inflation could derail economic recovery.
The NSE Nifty 50 index slid 0.51% to 15,282.45, as of 0446 GMT, while the S&P BSE Sensex fell 0.38% to 51,300.96, with both indexes touching over one-year lows in their sixth straight session of losses.
The blue-chip indexes are set for losses of over 5% in the week that saw the U.S. Federal Reserve hike interest rates by 75 basis points and the Swiss National Bank deliver its first rate hike in 15 years. If losses hold, the Nifty and Sensex could suffer their worst week since May 2020.
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"Investors remain concerned that central banks' commitment to bringing inflation down will seriously damage a fragile economic recovery," said Prashanth Tapse, vice president (Research) at Mehta Equities.
Tapse added that crude prices above the Indian central bank's assumptions for inflation projections and selling by foreign investors was creating uncertainty.
Foreign investors have withdrawn a net $3.64 billion out of Indian equities this month after selling a net $5.18 billion in May.
