Mumbai: Sensex continued to decline for the second consecutive session on Wednesday US government bonds rose while the price of crude oil approached the $90 a barrel mark, both at multi-year highs. After plunging 656 points on Wednesday, the Sensex closed down 1,210 at 60,099 overall in two sessions, which saw strong selling in IT stocks.
Analysts said selling in the domestic market was in response to the fall in global markets. It also took a toll on a number of recently listed stocks, some of which fell to life-lows. Sensex stocks as seen in the day’s session Infosys, ICICI Bank, HDFC and TCS led the slide, while buying in SBI and Maruti partially offset the decline.
The sell-off was led by foreign money BSE data shows it recorded a net outflow of Rs 2,705 crore, while domestic funds were net sellers of Rs 195 crore. Wednesday’s sell-off also cost investors around Rs 1.4 lakh crore, with the market capitalization of BSE now at Rs 277.8 lakh crore.
According to Siddharth Khemka, Head (Retail Research) Motilal Oswal Financial Services, selling in global markets continues as US Treasury yields hit nearly two-year high. “The prospect of a tighter monetary policy to curb inflation across the globe affected investor sentiment,” Khemka said.
Market players expect a hike in US benchmark yields to put pressure on the Federal Reserve to raise interest rates — a move that will raise the cost of funds. This may prompt foreign funds to look adversely on emerging market stocks, including Indian ones.
Major indices entered negative territory after marginal gains in the US. In a special way, Nasdaq was down 0.6% mid-session, taking it into technically corrective territory as the index was down more than 10% from its November all-time peak. On Dalal Street, among the newly listed shares, One97 Communications (PaytmIt broke below Rs 1,000 for the first time on Wednesday and closed at Rs 997 on BSE.
Analysts said selling in the domestic market was in response to the fall in global markets. It also took a toll on a number of recently listed stocks, some of which fell to life-lows. Sensex stocks as seen in the day’s session Infosys, ICICI Bank, HDFC and TCS led the slide, while buying in SBI and Maruti partially offset the decline.
The sell-off was led by foreign money BSE data shows it recorded a net outflow of Rs 2,705 crore, while domestic funds were net sellers of Rs 195 crore. Wednesday’s sell-off also cost investors around Rs 1.4 lakh crore, with the market capitalization of BSE now at Rs 277.8 lakh crore.
According to Siddharth Khemka, Head (Retail Research) Motilal Oswal Financial Services, selling in global markets continues as US Treasury yields hit nearly two-year high. “The prospect of a tighter monetary policy to curb inflation across the globe affected investor sentiment,” Khemka said.
Market players expect a hike in US benchmark yields to put pressure on the Federal Reserve to raise interest rates — a move that will raise the cost of funds. This may prompt foreign funds to look adversely on emerging market stocks, including Indian ones.
Major indices entered negative territory after marginal gains in the US. In a special way, Nasdaq was down 0.6% mid-session, taking it into technically corrective territory as the index was down more than 10% from its November all-time peak. On Dalal Street, among the newly listed shares, One97 Communications (PaytmIt broke below Rs 1,000 for the first time on Wednesday and closed at Rs 997 on BSE.
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