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Business News/ Markets / Stock Markets/  SGX Nifty points to nearly 300-point gap down in Nifty
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SGX Nifty points to nearly 300-point gap down in Nifty

SGX Nifty traded down 289 points at 17,781 in morning trades on SGX. SGX Nifty offers cues into initial price movements on the Nifty.

SGX Nifty points to nearly 300-point gap down in Nifty (Photo: Bloomberg) (Photo: Bloomberg)Premium
SGX Nifty points to nearly 300-point gap down in Nifty (Photo: Bloomberg) (Photo: Bloomberg)

Indian stocks could open sharply lower following the overnight carnage in US markets with the Dow and Nasdaq tanking by 4-5% after data showed retail prices rose higher than anticipated.

SGX Nifty traded down 289 points at 17,781 in morning trades on SGX. SGX Nifty offers cues into initial price movements on the Nifty.

Yesterday FIIs purchased shares worth a provisional 1,957 crore even as DIIs sold a provisional 1,268 crore worth of shares.

"The market could open sharply lower and recover during the course of the session," said Sudhir Joshi, director, Khambatta Securities, adding that "the momentum in Indian stocks remains strong."

Speaking on the likely impact of the US CPI on course of rate hikes there, Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher, said, “The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September."

US Fed Funds rate stands at around 2.25%. Markets, including in India, have priced in a 3.25% rate for this year. A hike by the US will force EM central banks to be more aggressive in their fight against inflation at the cost of economic growth.

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Published: 14 Sep 2022, 08:44 AM IST
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