Equity benchmark indices Sensex and Nifty are off to a weak start to Wednesday’s trade as the 10-year treasury yield in the US ticked over 4 per cent.
Sensex Crash: Equity benchmark indices Sensex and Nifty are off to a weak start to Wednesday’s trade as the 10-year treasury yield in the US ticked over 4 per cent.
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The BSE Sensex tanked 700 points to crack below 72,000 and the Nifty pulled back by 385 points to 21,650.
HDFC Bank led losses among largecaps, sinking over 5 per cent after its Q3 profit rose 2.5 per cent QoQ to Rs 16,373 crore. Axis Bank, Wipro, Tata Steel, Hindalco, Tata Motors and Bajaj Auto were next top losers on the fronltine indices.
On the flip side, Reliance, ITC, Nestle, HDFC Life, Cipla, Hero Moto and Bharti Airtel held gains.
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BSE Midcap and Smallcap indices also dipped up to 0.9 per cent.
“Market is likely to turn slightly weak in the near-term, getting impacted by some negative global and domestic cues. The global negativity will come from the rising bond yields in the US (the 10-year yield is at 4.04 %) responding to concerns that the sharp rate cuts expected from the Fed this year may not materialise. Now indications are that the Fed is unlikely to cut in March and the total cuts in 2024 may not be five or six that the market had partly discounted. This will be a drag on global equity markets. Domestically, even though the economy is doing well and corporate earnings are good, all these positives are in the price and the valuations are elevated warranting a correction,” said Dr V.K. Vijaykumar of Geojit Financial.
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Global Cues
US Federal Reserve Governor Christopher Waller Tuesday called for the bank to take a cautious approach in cutting rates, raising bets that number of rate cuts may be less than what Wall Street has been expecting.
Asian markets this morning mostly sank. China Q4 GDP grew 5.2 per cent YoY, slightly missing estimates. Hang Seng in Hong Kong sank 2.7 per cent. Kospi fell 1.7 per cent, ASX 200 was down 0.2 per cent, while Nikkei in Japan resumed its rally with a 1.2 per cent jump.
Overnight in the US, the S&P 500 fell 0.37 per cent, the Dow shed 0.62 per cent and the Nasdaq fell 0.19 per cent.
