Following solid US employment data on Friday that supported the Federal Reserve’s decision to raise interest rates quickly, Indian market benchmarks declined on Monday, followed by weaker Asian counterparts and a sell-off in risk assets. Rising oil prices further dampened the mood.
The broad NSE Nifty index opened down, as the BSE Sensex dropped more than 700 points in early trade.
On Friday, both benchmarks had their first weekly increase in four weeks, increasing more than 1% the previous week.
Due to poor Asian indications following a dramatic decline in US markets on Friday, equity markets are anticipated to begin weakly on Monday.
The US Federal Reserve is still on pace to raise interest rates rapidly, according to the robust September employment data, according to Prashanth Tapse, Senior Vice President for Research at Mehta Equities. Tapse made the statement before the market opened.
Investors are now anticipating the release of the monthly Consumer Price Index report on Thursday out of concern that rising energy costs might exacerbate inflationary pressures, the author continued.