Sensex Extends Losses: 3 Factors Weighing On Markets Today

0
8
Advertisement


Business

oi-Roshni Agarwal

|

Amid mixed global cues, Indian markets after sustaining two days of gains again saw some selling pressure. Nifty weakened to day’s low of 14691, while Sensex recorded levels of 49525 on the lower side. This is as we head to the next fiscal year tomorrow and amid Covid 19 Indian markets are set to record their best financial year performance in a decade.

Sensex Extends Losses: 3 Factors Weighing On Markets Today

Sensex Extends Losses: 3 Factors Weighing On Markets Today

Here are some of the factors weighing on the street today:

1. Sell off triggered by rising US treasury yield and gaining dollar:

Bonds are considered safer than equities and continuing surge in US treasury yield which hit a 14-month high in the earlier session is making equities less attractive. Also, dollar has also surged to its highest in nearly 5 months against rival currencies. Meanwhile, at the time of writing this copy, the impact of rising US yield also was felt in the European indices which traded in the negative, with loss of up to 0.34 percent on the FTSE.

2. Financials and private sector banks drag:

Much of the weakness in today’s session is led by financial services and private bank stocks including HDFC Bank, HDFC and Kotak Mahindra Bank among other. HDFC Bank extended losses and fell as much as 4 percent to Rs. 1488. On the other hand, PSU Banks were buzzing in trade today as the centre is set to infuse Rs. 14500 crore in 4 PSBs namely UCO Bank, Indian Overseas Bank, Central Bank of India and Bank of India.

3. IT pack also lent weakness to the markets:

After stellar gains of over 4% on the Nifty IT index on slump in the rupee to 3-week’s low yesterday, IT stocks were losing in Wednesday’s session. The stocks from the pack which are dragging the index down include Infosys, Tech Mahindra, Mphasis, L&T Infotech and Mindtree. While TCS and InfoEdge traded higher.

Now even as the markets shown a remarkable rally amid the pandemic and made investors wealthier with gains of over 60% on both the headline indices, the rally is primarily driven by strong FII inflows and abundant liquidity globally which made its way to India too.

GoodReturns.in





This Post was Automatically Generated from Source Link