BENGALURU, June 13 Reuters Indian shares sank more than 2.5 on Monday and the rupee hit an alltime low as growing fears of aggressive policy tightening by the U.S. Federal Reserve roiled investor sentiment in the runup to domestic inflation data.
The NSE Nifty 50 index ended down 2.6 at 15,774.4, its lowest level since July 2021, while the BSE index fell 2.7 to 52,846.7.
All eyes were on inflation data due later in the day. The consumer price index likely slipped modestly in May, but stayed well above the Reserve Bank of India39;s upper tolerance limit for a fifth consecutive month, according to a Reuters poll.
The Indian market39;s valuations continue to be uninspiring, especially of consumption sectors and 39;quality39; stocks, said Shrikant Chouhan, head of equity research retail at Kotak Securities.
Financials remain one of the few patches with reasonable valuations, but they too will struggle if India39;s macroeconomic position was to deteriorate further.
Global peers were also lower on worries that the Fed would tighten its policy more aggressively after data released last week showed the U.S. consumer price index hit its highest in over 40 years last month.
Under pressure from a strong dollar, the rupee hit a record low of 78.28 to the greenback, while the benchmark 10year bond yield rose to a more than threeyear high of 7.60 as investors dumped emerging market bonds.
Leading sectoral losses in Mumbai trading, information technology stocks on the Nifty…