Equity benchmarks plunged Monday, mirroring the nervousness in global markets about an earlier-than-expected rate hike by the US Federal Reserve.
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US rate hike fears rattled the bulls in the Indian equity markets. On Monday, the Sensex tanked over 600 points to slip well below the 29,000 mark, while the Nifty shed over 2 percent. Banks stocks lead the rout. However, SGX Nifty indicates a positive opening for the markets today. The index was trading at 8771.50, up 4.50 points at 7.58 am.
The US stocks closed higher on, recovering from Friday’s sharp decline as investors took a more positive outlook on the strong jobs report. Asia too is positive in morning trade.
Meanwhile the European Central Bank launched its 60 billion euro-a-month bond-buying program yesterday and euro zone finance ministers also discussed Greece’s reform plans.
In the currency space– the dollar fell marginally from multi-year highs as investors took profits from gains. In commodities, crude prices decline following geopolitical tensions and the threat of output cuts in Libya and Iraq. Brent trades below 59 dollars per barrel.
Goldman Sachs in its note said that oil prices would reverse recent gains on rising global inventories, with US crude expected to drop to around 40 dollars a barrel. From precious metals space, gold prices continue to trade near a three-month low.