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Fears of Fed rate hike, dull earnings, sinking rupee and all that drive market into red
The Indian markets opened over 1.3 percent lower on Monday amid expectations that the further tightening to continue by the US Federal Reserve. This came on the back of the US jobs data. Analysts said the surprisingly low US unemployment rate implies that the Fed will have to continue raising interest rates longer than the markets had discounted. The 10-year US treasury yields jumped nearly 22 basis points since the last four sessions, while the Dollar Index rebounded from 109.80 to 112.79 in the last one month. Investors are now awaiting the US September CPI print due on Thursday and FOMC minutes due on Wednesday. Even though auto and banking firms may report strong earnings growth, analysts expect the rise in aggregate profits will be muted, dragged down by EBITDA losses at oil marketing companies and smaller profits at upstream oil companies. Source - Money Control
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