At 10.03 a.m., sensex was at 55,597 points, down 328 points, whereas nifty at 16,585 points, down 76 points.

 

"The dominant factor determining the market direction, going forward, would be the trend in the US market, which, in turn, would be determined by the inflation in the US and the Fed's response to it," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

 

A major headwind for the Indian economy and markets is crude spiking above $120 per barrel over EU sanctions on Russian oil, said Vijayakumar.

 

Official data for Q4 GDP for India is likely to register at 2.7 per cent, and for the entire fiscal FY22 at 8.5 per cent, said Deepak Jasani, Head of Retail Research, HDFC Securities.