- Indian benchmark indices slipped sharply in the last few trading hours on Tuesday mirroring weak cues from the global markets.
- Investors are worried that the US Fed may hike interest rates aggressively while pulling back economic stimulus measures.
- As a result, the 10-year US Treasury yield jumped to its highest point in two years at 1.83%.
Indian markets witnessed a sharp sell-off today (January 18) mirroring the fall in Asian markets on expectations that the US Fed may hike interest rates aggressively while pulling back economic stimulus measures.
Last week, US Fed Chairman Jerome Powell told the US senate that he expected to see a series of interest rate hikes this year, along with a pull back in other pandemic economic support measures.
This means that the US Fed will reduce its holdings of treasury bonds, which triggered the 10-year US Treasury yield that jumped to its highest point in two years at 1.83%.
Reports say that the US Fed may hike interest rates four times this year, more than previous forecast of three times. The estimate comes amid rising inflation and a tightening job market in the US.
Global markets
| % change as of January 18
|
TSEC 50 Index (Taiwan)
| -0.79%
|
Sensex (India)
| -0.90%
|
Hang Seng (Hong Kong)
| -0.43%
|
Nikkei 225 (Japan)
| -0.27%
|
ASX All Ordinaries (Australia)
| -0.05%
|
Amid the volatility in the Indian markets, shares of automobile companies, IT companies, metal, FMCG, pharma companies were under pressure. Surge in crude oil prices along with sell off by foreign institutional investors (FIIs) added to the volatility.
Companies
| % change
|
Maruti Suzuki
| -4%
|
Tata Consumer Products
| -3.94%
|
Ultratech Cements
| -3.81%
|
Eicher Motors
| -3.67%
|
Grasim Industries
| -3.62%
|
Tech Mahindra
| -3.48%
|
HCL Technologies
| -3.07%
|
JSW Steel
| -2.88%
|
UPL
| -2.76%
|
Tata Motors
| -2.68%
|
Tata Steel
| -2.67%
|
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