The market in India snapped its four-week winning run as benchmark indices fell about three-and-a-half percent amid rising geopolitical tensions and fear of earlier-than-expected interest rate hikes. Foreign institutional investors turned bearish again, withdrawing money from equities and moving debt. Selling was seen across sectors with IT, pharma, and some banking names leading the loss chart.
According to many analysts, this volatility in the market will likely continue for a while and advised the investors to be cautious.
“Along with global disturbances, the uncertainties regarding the upcoming budget will likely keep the Indian market highly volatile in the coming days,'' said an expert.
Global equity markets were also volatile on the back of expectations of faster interest rate hikes by the US Federal Reserve, rise in US bond yields, higher crude oil prices, and concerns over rising inflation.
Read more