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The Federal Open Market Committee is expected to raise interest rates by a half point at the conclusion of its two-day policy meeting on Wednesday, its largest hike since 2000, and also announce plans to reduce the size of its bloated $8.9 trillion balance sheet.

Analysts said the Nifty’s fall below the crucial support of 16,800-mark has opened the likelihood of a sharper decline from current levels.

“The bond market point of view in fact is that though the bond yields have gone up by 20 bps today, otherwise the market has been building in a significant expectation and that is the way the bond yields have been reflecting on the potential rate hike which RBI would have eventually made.”

In a video statement, Das said that the RBI’s six-member Monetary Policy Committee had held a two-day meeting starting May 2 and decided unanimously to increase the repo rate to 4.40 per cent from the record low of 4 per cent.

The selloff in the counter has come when almost all tech stocks have suffered. Even those listed in the US are in bear grip.

“The Bharat story is very strong for Titan Company across all formats and we are seeing that playing out month after month and particularly in the April-June quarter, there will be a lot of semi-urban, rural weddings which we will certainly benefit through. FY23 is looking very good for us and we have begun April on a very good note. So all cylinders are firing for all businesses, everything is on top gear I would say.”

“It is important to be a realist not just being an optimist and this is something that was staring the RBI in the face for quite some time. We have now reached a stage where inflation has become an obstruction to growth rather than their accommodative policy spurring growth or helping growth. The results of the easy monetary policy continuing for longer than warranted has actually become an obstruction to growth.”

“I have been warning that it is a short business cycle. Do not think of it as another 2003 or 2008. It is a very short business expansion that we have experienced. The peak is behind us in terms of growth acceleration. We are decelerating fairly quickly and what we stare now is potentially a sort of analogue of 2011 in play. Everything would begin to slow and what will not slow is inflation.”

The 40 basis point-rate hike in the repo rate, the first rate hike since August 2018, and cash reserve ratio (CRR) by 50 basis points, sent stocks tumbling. Sensex tumbled 1,307 points for the day while Nifty50 settled below the 16,700 level, breaching the lower end of a range that had gained respect among traders for bounce backs in the past.

A long bear candle formed on the daily chart that decisively broke below the important support of 16,900-16,800 level, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.