Volatility drags Sensex and Nifty down for third month in 2022

Rising inflation has forced central banks, including the US Fed, to hike rates to tame inflation.

The benchmark Sensex and Nifty fell 2.6 per cent and 2.1 per cent, respectively, in April, marking the third month of decline so far this calendar year. The broader markets performed relatively better with the Nifty Midcap 100 eking out a 0.6 per cent gain and the Nifty Smallcap 100 index declining 1.7 per cent.

April was marred by intense volatility. Rising bond yields, the Russian invasion of Ukraine, hawkish commentary by the US Federal Reserve, and sustained capital outflows were some of the factors that weighed on investor sentiment during the month.

The Sensex fell 460 points, or 0.8 per cent,