Markets Take A Tumble

A bloodbath on domestic markets evidenced the worsening corona virus scenario and fears fuelled by better-than-expected US economic data, which led to speculation that the Federal Reserve would raise interest rates further

The modest rally of domestic indices at the start of the fortnight was driven by a decline in the retail inflation rate, an increase in forex reserves and strength in global markets. According to data released by the Ministry of Statistics and Programme Implementation, India’s headline retail inflation rate fell to an 11-month low of 5.88 per cent in November from 6.77 per cent the month before. India’s foreign exchange reserves continued to rise and soared for the fifth consecutive week ending on December 9, 2022. According to figures issued by the Ministry of Statistics and Programme Implementation, India’s industrial output, as measured by the Index of Industrial Production (IIP), dropped 4 per cent in October.