India’s benchmark indices declined for a third straight day on Thursday as a surge in US inflation triggered risk-off bets. Investors started to price in the possibility of a sooner-than-expected rate hike by the US Federal Reserve (Fed). The annual inflation rate in the US hit a 30-year high in October, challenging the Fed’s ‘transitory’ narrative.
The Sensex fell as much as 1.1 per cent, or 696 points, intra-day before recouping some losses in the last hour. The index ended the session at 59,919, a decline of 433 points, or 0.72 per cent. The Nifty, on the other hand, dropped 143 points, or 0.8 per cent, to end the session at 17,873.
The US inflation data showed that the consumer price index (CPI) had risen to 6.2 per cent in October — a 30-year high on a year-on-year basis. The numbers were well above analysts’ expectations.
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