US Federal Reserve's rate cut hopes dwindle as latest data shows a robust labor market recovery post-Covid-19. December recorded 2.16 lakh new jobs and 4.1 percent wage growth, challenging the need for immediate intervention and shaping investor views on future monetary policy.
The domestic market is cautious ahead of major IT giants revealing their Q3 results. Tata Consultancy Services and Infosys will announce the Q3 report card on January 11.
The 670-point crash at Sensex can be attributed to the performance by Asian markets. In Asian markets, Seoul, Shanghai and Hong Kong settled lower. Japan's Nikkei was closed for a holiday. The European markets were trading lower.
Market decline linked to technical factors: Kunal Shah, senior analyst at LKP Securities, notes Nifty's proximity to support at 21,500 and the short-term 14-day moving average. Investors closely monitoring for insights into future trends.
Investors track escalating tensions: Houthi attacks in the Red Sea and the Israel-Gaza conflict. The Red Sea's role in Suez Canal shipping and Asia-Europe trade raises disruption concerns, shaping investor decisions in a volatile market.