Market LIVE: Sensex tumbles 900 pts, Nifty around 17,300 as US inflation bites

Share Market LIVE Updates: Benchmark Indian indices opened sharply lower on Friday. The Sensex opened over 600 points lower at 58,447.15; Nifty50 dropped 191.85 points to start at 17,414 amid weak global cues. TechM, Infy, Wipro were the top losers

The benchmark indices saw a negative start on Friday. The Sensex dropped over 600 points, while the Nifty started 191 points lower. On Thursday, the market extended gains for the third straight session following RBI's decision to hold the key rates and positive global cues. However, Friday session is likely to see a churn. The higher-than-expected US inflation data rattled the Wall Street shares on Thursday as the fears of aggressive rate hikes by the US Federal Reserve gripped the market. The US inflation rose 7.5%, which is a four-decade high, leading to hawkish comments from a Fed official. In Asia, shares in Shanghai and Japan rose, while South Korea, Hong Kong, and Australia retreated.??

Experts recommend buy on this Rakesh Jhunjhunwala stock despite weak Q3 results

Rakesh Jhunjhunwala portfolio: Stock market analysts have continued their faith in Steel Authority of India (SAIL) shares despite disappointing Q3 SAIL results. According to experts, SAIL share price is under retracement after making 52-week high of ?151.30 apiece on NSE. But, this Navratna PSU metal stock has strong support at ?90 levels and one can initiate fresh buying at ?100 levels.

Fed doesn’t yet favour a half-point hike or an emergency move

Federal Reserve officials are in no rush to raise interest rates prior to their scheduled policy meeting next month, nor is a half percentage-point move in March yet likely, despite a bigger-than-expected jump in consumer prices that stoked speculation about such options.

An emergency increase risks signaling panic and cementing criticism that the central bank is too far behind in reining in inflation, while Chair Jerome Powell only last month predicted the pace of price increases would cool later this year. Powell also has shown a preference for building consensus within the policy-setting committee, and no Fed officials are now signaling a rush to act before its March 15-16 gathering.

The Sensex opened over 600 lower at 58,447.15; Nifty50 dropped 191.85 points to start at 17,414 amid weak global cues??

At market pre-opening, the Sensex was at 58,447, down 478 points; Nifty50 was at 17,451, 154 points lower?

Vedant Fashions IPO share allotment today. How to check allotment status online

Vedant Fashions IPO: Announcement of Vedant Fashions share allocation can come any time today as tentative Vedant Fashions IPO allotment date is 11th February 2022. So, those who have applied for this public issue worth ?3,149.19 crore can check their application status online by logging in at the BSE website or at the website of its official registrar — KFintech Private Limited. According to market observers, Vedant Fashions share price in the grey market has become steady as Vedant Fashions IPO GMP today is ?6.

SAIL, 2 other PSU stocks under F&O ban on NSE today. Details inside

Three stocks have been put under the ban for trade on Friday, February 11, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities havbeen put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE.

Gold slips as chances of hefty Fed rate hike rise after CPI data

Gold prices slipped on Friday, as a stronger-than-expected U.S. inflation reading and hawkish comments from a Federal Reserve official ramped up odds for a hefty interest rate hike next month, sending Treasury yields higher.

Fundamentals

Spot gold fell 0.1% to $1,825.29 per ounce by 0141 GMT, while U.S. gold futures dropped 0.7% to $1,824.50.

U.S. consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years, fuelling speculation for a 50 basis point rate hike from the Fed next month.

St. Louis Federal Reserve President James Bullard said he wanted to see a full percentage point worth of rate hikes over the next three policy meetings by the central bank.

Rate futures showed a 62% chance that the Fed will raise interest rates by 50 basis points in March following Bullard's remarks, from a 30% chance late on Wednesday.

Benchmark 10-year Treasury yields hovered close to Thursday's August 2019 high of 2%.?

Higher yields and rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest paying gold.

Oil set for first weekly drop since December on Iran progress

Oil headed for the first weekly loss since mid-December as a flurry of diplomacy increased the chance of an Iranian nuclear deal being revived, paving the way for a resumption in official flows from the nation.

Futures in New York fluctuated near $90 a barrel on Friday and are down almost 3% this week. Officials from the U.S. to Europe have indicated that sides are closing in on a nuclear pact after talks resumed in Vienna Tuesday. A bigger-than-expected jump in U.S. inflation that stirred hawkish Federal Reserve comments added to the bearish sentiment.

China moves to ease developer cash access

China has moved to ease funding pressure on the nation’s embattled developers, standardizing rules governing how pre-sale proceeds from housing projects can be used, according to media reports.

The new, unified regulation would replace legions of local rules and allow builders to withdraw and use such proceeds after setting aside the amount required for project building. It’s the latest sign of support, coming as the biggest bad-debt managers look to participate in assistance to cash-strapped property developers at the urging of policy makers in Beijing.

US two-year Treasury yield posted its biggest one-day surge since 2009

The U.S. two-year Treasury yield posted its biggest one-day surge since 2009 amid sharp losses across a flattening curve, a mix that suggests investors expect slowing growth alongside aggressive Fed steps to curb price pressures. Treasury futures were steady. There is no cash trading due to a Japan holiday.

US inflation highest in 40 years, with no letup in sight

Inflation soared over the past year at its highest rate in four decades, hammering American consumers, wiping out pay raises and reinforcing the Federal Reserve's decision to begin raising borrowing rates across the economy.

The Labor Department said Thursday that consumer prices jumped 7.5per cent last month compared with a year earlier, the steepest year-over-year increase since February 1982.

When measured from December to January, inflation was 0.6per cent, the same as the previous month and more than economists had expected. Prices rose 0.7per cent from October to November and 0.9per cent from September to October.

Shortages of supplies and workers, heavy doses of federal aid, ultra-low interest rates and robust consumer spending combined to send inflation leaping in the past year. And there are few signs that it will slow significantly anytime soon.

Rate hike bets keep US dollar bid

The dollar was firm in Asia on Friday after hotter-than-expected U.S. inflation and hawkish comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes, though similar pressures worldwide kept a lid on gains.

Thursday data showed U.S. consumer prices up 7.5% year-on-year in January, a fourth straight month above 6% and slightly higher than economists' forecasts for a 7.3% rise.

After that, St. Louis Fed President James Bullard told Bloomberg he'd like to see 100 basis points of hikes by July.

Treasury yields leapt and the dollar jumped to a five-week high of 116.34 yen during volatile overnight trade.

Asia Stocks Mixed, Bonds Drop Amid Fed-Hike Bets

Stocks were mixed and bonds fell in Asia Friday after Treasuries and Wall Street shares sank on a jump in U.S. inflation to a fresh four-decade high that stirred hawkish comments from a Federal Reserve official.

U.S. and European equity futures retreated, while shares fluctuated in China and Hong Kong. The tech-heavy Nasdaq 100 led declines overnight as U.S. shares snapped a two-day winning run.

Bonds dropped in New Zealand and Australia, where the three-year yield hit the highest since 2019. The U.S. two-year Treasury yield Thursday posted its biggest one-day surge since 2009. Treasury futures edged up. There is no cash trading due to a Japan holiday.

The mix of sharp losses in Treasuries and a flattening yield curve suggests investors expect slowing growth alongside aggressive Fed steps to curb price pressures. The dollar climbed.

U.S. inflation hit 7.5%, with goods prices soaring and costs for services also starting to pick up. St. Louis Fed Chair James Bullard said the central bank should hike rates by 100 basis points over the next three meetings. He raised the possibility of considering a move in between scheduled policy reviews.

The Dow Jones Industrial Average fell 1.47% to end at 35,241.59 points, while the S&P 500 lost 1.81% to 4,504.06. The Nasdaq Composite dropped 2.1% to 14,185.64. It was the seventh time in 2022 that the Nasdaq lost more than 2% in a session.

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