After a long weekend, the Indian stock market traded deep into red after weak global cues. At 9:56 a.m., Sensex fell 1,079.31 points or 1.85 percent at 57,259.62, and Nifty fell 276.50 points or 1.58 percent at 17.199.20.

The IT index fell more than 4 percent dragged by infosys missing 6 percent followed by Mphasis, Tech Mahindra, Mindtree and TCS. The nifty bank fell more than 1 percent hit by realty’s capital, power and tribulation.

According to Vijayakumar, the head of investment strategist at Geojit Financial Services, in the near future, headwinds are getting stronger for the market. Globally, negative sentiment with the dollar index above 100, 10 years above 2.8 percent and the global economy is expected to weaken if the Ukrainian war extends.

Back home in India, the infosys results are worse than expected by increasing friction and weakening margins, although the prospect of growth looks bright. The assessment may be under pressure dragging the index down.

“Clear trends on the market are preferences for more value than growth. These trends and internal performance tend to continue. Investors will get a purchase opportunity in this segment,” Vijayakumar said.

Here are the factors that drag a lower market:

Chinese GDP.

China has reported the growth rate of 4.8 percent gross domestic product for the first quarter of 2022, such as opposing 4 percent in the fourth quarter. This growth number has been higher than anticipated, given the level of disturbance related to Covid in March. Growth rates may not fully capture shock waves from covid locking in several cities which are also economic centers, including Shanghai.

Bank Rakyat China has, over the weekend, also initiated easing steps to reduce the ratio of reserve requirements (RRR) for most banks by 25 basis points. However, there is no interest rate deduction, and this size fails from what some economists expect.

Inflation in India.

Consumer inflation entered surprisingly 6.95 percent in March versus the CNBC-TV18 poll economist who has set it at 6.28 percent. Most of the economists, including those from Citi, HSBC and the box have revised their inflation estimates for the upper year and now see six repo interest rates at a sequential monetary policy committee meeting beginning in June. Citi and HSBC saw a repo level of 5.5 percent in April 2023. This level is currently 4 percent. The 10-year bond results, which have surged since the announcement of Monetary Policy April 8 Reserve Bank India, is expected to shoot up to 7.25 percent from overnight 7.17 percent closure.

The index fell more than 4 percent

The IT index fell more than 4 percent with the peak names down 6 percent. Analysts have cut the estimated infosys margin for lower income than estimates for the March quarter. At 9 percent, Infosys has the largest decline in the market since March 23, 2020. Jefferies India cut the estimated margin of 100-170 basis points into a lost factor and expected 21.9 percent margins in FY22. Brokerage company, Nomura Research expects the EBIT FY23F margin to decline 100bp year to 22 percent and reduce FY22-24 per share income by 5-7 percent especially in our lower margin expectations.

Higher oil prices

Oil prices rose on Monday as growing concerns about more stringent global supply, with the deepening crisis in Ukraine raised the prospect of heavier sanctions by the West Russian exporter. Brent Futures rose $ 1.50, or 1.3 percent, at $ 113.20 a barrel at 0030 GMT, and the US West Texas Intermediate Futures rose 98 cents, or 0.9 percent, to $ 107.93 a barrel. The International Energy Agency has warned that approximately 3 million barrels per day (BPD) Russian oil can be closed from May and so on due to sanctions, or voluntary buyers avoid Russian cargo.

Global market in red

The US market ended lower while bond yields and dollars rose on Thursday as investors were worried about the potential to tighten aggressive US policy as other central banks throughout the world moved to reduce support. The 10-year Benchmark of the US Yield Treasury soared, following two days of decline, after the busyness of US economic data such as retail sales and unemployment claims and the announcement of the European Central Bank which was less aggressive than the expected tightening plan.

Among the Asian markets apart from the Indian index, the Nikkei fell more than one percent while Hang Seng added half a percent while SGX Nifty fell from 100 points.