Along with India, America also had to make a big increase in its policy interest rates due to inflation. Its effect was seen in the Indian and American stock markets. On Thursday, the major sensitive index of the US stock market, the Dowjons, fell 3.12 percent or 1063 points. The Nasdaq also dived 4.99 per cent and the S&P closed down 153 points, or 3.56 per cent. Amazon shares closed 7.56%, Facebook shares 6.77%, Tesla shares 8.33%.
Let us tell you that on Wednesday, due to the sudden decision of the Reserve Bank of India to increase the repo rates, the stock market got a big setback. The BSE Sensex, based on 30 shares, closed at 55,669.03 points, down 1,306.96, or 2.29 per cent. During trading, it had gone down to 1,474.39 points at one time. Similarly, the Nifty of the National Stock Exchange also closed at 16,677.60, down 391.50 points or 2.29 percent.
Growth of service sector contributing more than 25% to employment at the top of five months
At the same time, America’s central bank Federal Reserve increased interest rates by 0.50 percent late on Wednesday, the biggest increase in the last 22 years. In fact, retail inflation in the US is at a 40-year high and the pressure on the central bank to raise interest rates was also considerable. Fed Reserve chief Jerome Powell said, “Our goal is to keep inflation below 2 percent, while creating a lot of jobs.” For this it became necessary to increase the interest rates.