Indian Shares Struggle Amid Global Concerns Over Rates and Crude Prices

28 Sep 2023 , 01:39 PM

Indian shares struggle amid global market concerns over higher interest rates and surging crude prices. India, despite the correction, is outperforming global markets, but challenges like high crude prices and rupee depreciation persist. At the time of writing Sensex was trading at Rs 65658 (-0.70%), whereas Nifty was trading at Rs 19,576 (-0.68%).

Surging U.S. Treasury yields and a stronger dollar are impacting global equities post a hawkish Federal Reserve stance. India, a major crude importer, faces increased pressure due to rising crude prices and lower monsoon rains, elevating inflation risks.

Domestically focused stocks show resilience, with small-caps and mid-caps recording modest gains. Corporate results for this quarter are expected to be positive, except for the information technology sector, signaling a ‘buy on dips’ market approach.

In sectoral performance, information technology stocks decline, metals gain, and public sector banks see an uptick. Oil India sees a 3% rise due to increased crude prices, while ICICI Lombard faces a 2% dip following a tax-related demand notice.

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