Rs 5 lakh crore gone! 4 factors behind Sensex crash today

US inflation falls less-than estimates

Data released overnight showed that the US CPI print eased to 8.3 per cent in April from 8.5 per cent in March, but it failed to meet estimates of 8.1 per cent

suggesting that while inflation in the world's largest economy may have peaked, any further easing would be a gradual process and that an aggressive Fed stance may continue

Dollar rise, Asia markets fall

Dollar stayed near a two-decade high following the US inflation reading, hurting emerging market equities. 

equities. The dollar index, which measures the greenback against a basket of six major world currencies, stood at 103.92.

Continued FPI outlfows

Provisional data suggested that foreign portfolio investors (FPIs) were net sellers of domestic stocks to the tune of Rs 3,609.35 crore on Wednesday

FPI outflows have touched Rs 17,403 crore in May and Rs 1,44,565 crore in 2022 so far.

All eyes on India CPI reading

The day would see the release of India's Apil CPI readings, which, unlike the US, may rise over the previous reading. Nirmal Bang Institutional Equities said CPI inflation is likely to rise to 7.4 per cent in April from 6.95 per cent in March

led by higher prices of edible oil and fuel and a gradual pass-through of rise in input costs to retail prices, as well as, inflation in the services sector, supported by the opening up of the economy.