Recession concerns and inflation worries: Factors that contributed to todays market crash
BSE Sensex closed at 57147.32 which is 843.79 points down, or 1.46 per cent lower.
Equity benchmark indices closed in red after having an eventful trading day. BSE Sensex closed at 57147.32 which is 843.79 points down, or 1.46 per cent lower. Nifty50 closed at 16,983.55, which is 257.45 points or 1.49 per cent down.
In the 30-share Sensex pack, Titan, Power Grid, Maruti, Mahindra & Mahindra, Bharti Airtel, Hindustan Unilever, ICICI Bank and State Bank of India were the major laggards. On the other hand, Asian Paints, Infosys, Wipro, HCL Technologies and ITC were among the gainers.
Some factors that affected the market-
Inflation worries-
On Monday, Reuters released a poll according to which India's retail inflation accelerated to a five month high of 7.30% in September due to surging food prices, staying well above the Reserve Bank of India's (RBI) upper tolerance band for a ninth month. Globally inflation continued to be a worry due to Russia's invasion of Ukraine. World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday that inflation remained a continuing problem after Russia's invasion of Ukraine.
Weak International markets-
In Asia, markets in Seoul, Tokyo and Hong Kong were trading lower in the early trade. European markets also were trading in red with concern over interest rate hikes from central banks and their impact on economic growth. Markets in Europe were also watching developments in Ukraine after multiple explosions hit the centre of Ukraine’s capital Kyiv.
Recession concerns-
JPMorgan CEO Dimon on Monday warned of recession in 6 to 9 months. He said that the United States and the global economy could tip into a recession by the middle of the next year. Runaway inflation, big interest rate hikes, the Russian invasion of Ukraine and the unknown effects of the Federal Reserve's quantitative tightening policy are among the indicators of a potential recession, he said in an interview to a business news channel.
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