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Domestic equities witnessed a steep fall on account of weak global cues and India’s inflation data which is schedule to release post market hours. Further, rupee hit record low of 78.28 amid volatile crude oil prices. Nifty opened gap down and breached 16,000 levels to close at 15774 with a loss of 427 points (-2.7%). Broader market mirrored the benchmark with Nifty Mid /small cap indices down by 3-4% each. Even India Vix jumped 14% to 22.37 levels.

Global markets saw sharp sell-off after US consumer inflation for May’22 accelerated to a four-decade high to 8.6%.  Further US treasury yields too inched up to 3.24% (4 year high) fuelled fears of aggressive interest rate hikes by US Federal Reserve in its policy meet scheduled this week on 14-15 June. 

Near term market outlook remains weak on the back of twin global headwinds of high inflation and increasing interest rates. Several global central banks including US Fed are scheduled to meet this week to decide on their monetary policy and would keep the markets busy. Further, on the domestic side depreciating INR and consistent FII selling are aggravating the pressure on markets. Nifty has broken the 16k levels and weakness is likely to continue till it hold below this. Market is likely to remain lacklustre in the absence of any near term positive triggers. Traders should remain cautious and avoid leveraged long positions for now.