Share Market Today, Sensex falls 621 pts, Nifty below 17,800, and US Fed’s hawkish stance

Share Market Today Sensex falls 621 pts, Nifty below 17,800, and US Fed's hawkish stance

Share Market Today: Both Nifty and Sensex were trading down around 1.5% till today morning, Nifty was down by 257 points and Sensex was almost 950 points down.

All sectoral indices of Nifty are also in red where Nifty IT, Nifty Bank, and Nifty Realty have seen the biggest fall.

Share Market Today: Sensex fell 621.31 points, while Nifty declined 179.40 points

Global Concerns around the new COVID Variant, Apart from this, there is another major concern at the global level regarding new variants of Covid. Due to the Delta variant and Omicron variant, there is a rapid rise in the cases of Covid.

India recently recorded more than 90 thousand Covid cases in a day and Omicron has crossed the number of cases to 2135. The highest number of fresh cases were recorded in Mumbai which is 15166.

As the cases are increasing, many states have started implementing strict rules and have imposed restrictions on unnecessary travel.

In such a situation, the continuous increase in cases can indicate the beginning of the third wave of Covid in India, due to which lockdowns can be done.

All these actions will have a direct impact on the economy and business, and due to this the market reacted negatively today and a fall was seen.

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Share Market Today: US Fed’s hawkish stance

The first reason is the Hawkish Stance of the US fed in the recently held meeting. US Fed officials are concerned about the rapidly rising inflation and global supply challenges, their corresponding job market is also very tight and the rise in inflation is a major issue along with it.

In such a situation, the Federal Reserve can accelerate the plan to raise the interest rate. There was also a rise in US Treasury yields due to the Fed’s stance.

The US 10-year yield closed at 1.7030% on Wednesday. The US 2-year and 5-year yields, which are more sensitive to interest rate hike expectations, are also at their highest levels since the first quarter of 2020.

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Share Market Today: Global Market

The Nasdaq fell more than 3% on Wednesday and a sharp fall was also seen in the S&P 500. Australian shares fell 1.53% and Japan’s Nikkei stock index also fell below 2.08%.

In the coming time, the sentiment of the market will be heavily dependent on the Covid cases and the stance of the Global Central Bank.

If the interest rate is hiked, the flow of capital will go from equity asset class to debt and then there can be a further correction in the market.

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