Nifty 50 falls to five-week low of 23,398 as Fed rate hike odds rise
Indian equity markets closed down 0.34% with the Nifty 50 hitting a three-month low, while investors price in a 25-basis-point Federal Reserve rate increase amid rising inflation.
The Nifty 50 index closed Friday at 23,398.10, falling 79.70 points or 0.34% to reach its lowest point in three months. The broader market extended a losing streak covering five consecutive weeks. Monday trading was paused for the Ganesh Chaturthi holiday, leaving Tuesday's session as the first opportunity for reaction to recent global data. During that week, the BSE Sensex declined 120.83 points or 0.16% to close at 74,781.76. Sector performance varied significantly; the Nifty Bank index lost ground for a third straight week, and the midcap sector slid during its second consecutive period of weakness. Conversely, healthcare and pharma stocks outperformed while realty became the largest loser.
Global attention focuses on the upcoming Federal Reserve interest rate decision scheduled for Wednesday at 2:00 PM EDT. Markets are currently pricing in a high probability that the central bank will raise rates by 25 basis points. This expectation follows data released on September 11, which showed headline consumer price inflation climbing 0.4% month-on-month while staying stable at 3.4% annually. Core inflation increased 0.3% from the prior month but decreased to 2.4% when comparing year-over-year figures.
