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Indian shares drop 2% ahead of inflation data

Indian shares drop 2% ahead of inflation data

reuters.com · 06/13/2022 00:04
Indian shares drop 2% ahead of inflation data

- Indian shares opened 2% lower on Monday, with the rupee hitting a lifetime low as investors awaited inflation data later in the day, while global markets plunged over fears of aggressive policy tightening by the U.S. Federal Reserve later this week.

The NSE Nifty 50 index .NSEI was down 2.3% at 15,833.45, as of 0351 GMT, after touching its lowest in nearly four weeks.

The S&P BSE Sensex .BSESN fell 2.4% to 52,990.35.

The Indian rupee INR=IN touched a lifetime low of 78.28 to the dollar while the benchmark 10-year bond yield IN065432G=CC hit 7.60%, its highest since Feb. 28, 2019. nS8N2W205A

The Nifty IT index .NIFTYIT was down 2.6%, while the NSE bank index .NSEBANK fell nearly 3%.

Asian stocks dropped over fears that the Fed would tighten policy on Wednesday, after data last week showed the U.S. consumer price index hit its highest in over 40 years last month. nL1N2XX118

Rising COVID-19 cases in Beijing added to woes, only a short time after the city relaxed curbs to quell a recent outbreak.

(Reporting by Tanvi Mehta in Bengaluru; Editing by Shailesh Kuber)

((tanvi.mehta@thomsonreuters.com; https://twitter.com/TanviMehta710;))