Indian stocks close in red on continued US Fed's interest rate hike, Global shares mixed

During the day, the Sensex and Nifty for a while pared some of its early losses but could not hold on to it

Indian stocks settled lower on Thursday in line with weakness in the US markets, which declined sharply overnight as the US Federal Reserve went ahead with its further monetary policy tightening to bring down inflation to its target even as volatility in the banking system continued due to recent collapse of some banks.

Both Sensex and Nifty closed the day 0.5 percent lower each; with majority of the Nifty sectoral indices trading in the red. During the day, the Sensex and Nifty for a while pared some of its early losses but could not hold on to it.

Monetary policy tightening in the form of interest rate hikes in the advanced economies is detrimental for India, and other developing countries, as investments tend to shift to those advanced countries where returns on investments are reasonable and stable.