Markets Close in Red on Rate Hike Fears

Indian markets closed below psychological levels to end the week. The rate sensitive sectors ended sharply lower on back of selling pressure due to rate hike fears. The market sentiments changed to negative after headline of inflation for the month of December surged to 8.43 percent. The Central Bank is scheduled for a policy review on January 25. The rise in crude prices, rising interest rates, higher inflation, disappointing industrial output data, and various scams are few reasons for continued free fall in the markets seen in past two weeks. The Indian markets tank almost 7.8 percent in last two weeks. The benchmark indices Nifty and Sensex ended at 5654.55 and 18860.44, down 1.69 and 1.68 percent respectively. The Nifty ended below the 5700-mark, which was emerged as a strong support. The market breadth was negative with 1956 declines against 151 advances.