Indian equity benchmarks on Thursday extended their fall for the fourth consecutive day amid weak cues from the global markets. U.S. stock futures were weak after its consumer inflation surged to a more than 40-year high of 9.1 per cent in June, signalling an aggressive interest rate hike by the Federal Reserve. Most Asian stocks also traded lower over worries that a faster rate hike to tame inflation could push the economy into recession.
Although, oil prices declined on concerns that a sharp U.S. rate hike could stem inflation but at the same time reduce crude demand. Brent crude futures fell 2.23 per cent to $97.35 a barrel.
Moreover, domestic indices reversed their early gains as wholesale price-based (WPI) inflation stayed in double digits for the 15th straight month. The figure stood at 15.18 per cent in June. June’s retail inflation — at 7.01 per cent — staying above Reserve Bank of India’s (RBI’s) upper tolerance limit for six months in a row also dampened investors’ sentiment.