After the budget, the market fell due to the sell-off due to the cautious attitude of the investors.

Markets in other Asia-Pacific regions were mixed on Thursday, while China and Hong Kong remained closed for the Lunar New Year holidays. Japan’s Nikkei 225 closed down 1.06% and South Korea’s Kospi fell 1.67%.

According to Vinod Nair, Head of Research, Geojit Financial Services, wide selling in the domestic market due to global cues going in favor of the bears extended their losses. “US futures were under pressure following weak earnings data reported by Meta (Facebook), while European markets were worried about monetary policy tightening,” Nair said.

The Bank of England raised interest rates to 0.5% on Thursday and nearly half of its policymakers took the big hike largely to cushion price pressure, as the central bank warned inflation could soon hit 7%. will be above. The move comes hot on the heels of a rate hike in December, which marked the first back-to-back hike in the bank rate since 2004 and reflects the urgency among MPC members to address the rising cost- Life is on top of the crisis. Contrary to the approach adopted by the European Central Bank, the BoE warned that further “slight tightening” is in the pipeline, even though growth will be impacted by global energy and goods price inflation.

Siddharth Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd, said that the Indian markets are witnessing a stagnation in their momentum as the focus has shifted from the Budget to interest rate and inflation. February 9 will also be an important event to watch. Q3FY22 earnings have been good so far and most of the management commentary suggests Q4 numbers to remain strong. Overall, we remain positive on the market. From a sector perspective, we expect infra, construction, cement, capital goods, affordable housing, logistics and defence, the focus will be on.

The India VIX or the Indian Volatility Index warmed up by 2.73% to 19.17 on Thursday indicating an increase in worry and panic among investors.

Foreign Institutional Investors (FIIs) have once again started buying in Indian stocks. So far in February, FIIs have been net buyers of Indian shares worth $67.70 million after a massive outflow of $4.81 billion last month. FIIs have been selling Indian shares continuously since October 2021. Domestic institutional investors have invested in 2023.66 crore in February after net inflow of 21928.40 crores in the first month of the year.

(Reuters contributed to the story)