Indian stocks bearish for 3rd straight day on fears of monetary policy tightening

New Delhi [India]Sept 16 (ANI): Indian stock markets opened in the red in Friday trading as various central banks aggressively tightened global monetary policy to ward off recession fears. It has fallen three times in a row due to concerns about

At 9:26 am, Sensex traded down 335.09 points (0.56%) to 59,598.92 points, while Nifty traded down 93.15 points (0.52%) to 17,784.25 points.

Of the Nifty 50, 33 fell, 16 rose, and 1 traded stable.

Indian stocks fell sharply after rising for the fourth time in a row early on Wednesday. This is due to consistently high consumer inflation in the US and the likelihood of further interest rate hikes.

US consumer inflation eased slightly to 8.3% in August from 8.5% in July, well above the 2% target.

Several senior Federal Reserve Board (Fed) officials recently said at a two-day monetary policy meeting beginning Sept. 20 that another rate hike is imminent.

Moreover, global rating agency Fitch Ratings forecast Thursday that the US will experience a “mild” recession in mid-2023. In the United States, economic growth is he projected at 1.7% in 2022 and 0.5% in 2023, revised down by 1.2 percentage points and 1 percentage point respectively.

Against the backdrop of high inflation, central banks including the US Federal Reserve (Fed), Bank of England (BOE) and ECB have turned more aggressive in recent months, raising policy rates much faster than expected. was given.

The US Federal Reserve (Fed) is now expected to raise interest rates to 4% by the end of the year and keep them there until 2023, according to rating agencies. The ECB refinancing rate is expected to rise to 2% by December and the BOE bank rate is expected to reach 3.25% by February 2023.

Raising interest rates is usually a monetary policy instrument that helps keep demand in the economy in check, thereby helping to keep inflation down. (Ani)