Equity benchmarks got butchered on Friday, led by a sell-off across sectors and a pull-out of some money by foreign institutional investors. Inflation worries due to spike up in commodity prices in international markets, domestic issues (scams) and a likely hike in key rates by the Reserve Bank of India (RBI) in its forthcoming policy meet could be some of the reasons behind this carnage along with shorts build up.
Sudeep Bandyopadhyay, President of Destimoney Securities said there has been a significant pressure building up in the market due to the commodity price movement in the international markets, which was something very serious for Indian economy and Indian markets. "What was happening at the peak of the 2007-08 boom was we had a commodity asset book internationally of about USD 250 billion and today we have an international commodity asset book of about USD 400 billion. So a lot of money is moving into commodities and thatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
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