From the previous week, the Indian equity benchmark Sensex extended its losses as the Indian markets are concerned about the increasing inflation along with the chances of monetary policy tightening in the United States. Policy tightening, which essentially means an increase in rate, is negative for the Indian market as investors usually prefer the United States markets to consolidate higher returns. Today morning, at 9.32 a.m., Sensex was at 56,582 points, down 1.1 percent, whereas Nifty was at 16,988 points, down 1.1 per cent.
Chief Investment Strategist at Geojit Financial Services, V.K. Vijayakumar said, "Markets are worried about the increasing hawkish messages from the Fed which indicate higher-than-expected rate hikes by the Fed this year. There are concerns that aggressive monetary tightening might even push the US economy into a recession in 2023. These fears are impacting risky assets. India cannot be immune to a probable global market correction. But India is relatively resilient. Monetary tightening in India would be mild compared to that of the US.” Additionally, Consumer Price Index, or retail inflation in India increased steeply in the month of March to 6.95 percent, which was above the Reserve Bank of India's upper tolerance band of 6 percent for three consecutive months in a row.