Global cues continuously remain weak as there is a sharp surge in the dollar index and US bond yields post US inflation numbers
Indian stock markets fell sharply today in afternoon trade, with Sensex falling about 1,100 points - its biggest drop in 3 months. The Nifty finished 2% lower at 17,530 levels. Analysts attributed the nervousness on Dalal Street to weak global cues on fears of aggressive tightening by the Fed in the face of warnings of a global recession. Rating agency Fitch earlier this week cut India's gross domestic product growth forecast for the current fiscal year to 7% from 7.8%, amid a slowdown triggered by global economic stress, elevated inflation and tighter RBI monetary policy.