Nifty below 22,700 as Sensex drops over 380 points
Tuesday saw the Nifty dropping below 22,700 and the Sensex sliding over 380 points, with both continuing their losing streak from the previous session.
This dip is mainly tied to Brent crude trades above $106 a barrel and US 10-year Treasury yields hitting new highs, making investors a bit uneasy.
PSU banks slump, FIIs withdraw ₹5,353cr
PSU banks had a rough day, with their sector index falling 3.15% and Bank Nifty slipping below the important 55,000 mark.
Meanwhile, pharma stocks like Dr. Reddy's and Cipla managed some early gains.
Foreign institutional investors pulled out over ₹5,353 crore from Indian equities, but domestic buyers stepped in to soften the blow.
According to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, concerns about high US growth and inflation could mean another Fed rate hike, something that might impact India's GDP growth and corporate earnings growth for FY27 if crude prices remain elevated.