Sensex slumps over 150 points; Nifty drops below 17,700
(Sourced from PTI)
Equity benchmark Sensex dropped over 150 points in early trade on Thursday, tracking losses in index majors Reliance Industries, HDFC Bank, and ICICI Bank amid sustained foreign fund outflow. The 30-share Sensex was trading 178.60 points or 0.30 percent lower at 59,234.67. Similarly, the Nifty declined 49.15 points or 0.28 percent to 17,662.15. Here's more.
Reliance Industries was the top loser in the Sensex pack, shedding around one percent, followed by PowerGrid, Kotak Bank, Maruti, Bajaj Auto, and Axis Bank. On the other hand, Dr. Reddy's, Tata Steel, L&T, NTPC, Bharti Airtel, and HUL were among the gainers.
In the previous session, the 30-share index closed 254.33 points or 0.43 percent lower at 59,413.27, and Nifty declined 37.30 points or 0.21 percent to 17,711.30. Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 1,896.02 crore on Wednesday, as per exchange data.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the surge in the benchmark US 10-year yields to 1.546 percent spooked equity markets in the US with cuts of above two percent in S&P 500 and Nasdaq. "The rise in US bond yields triggering correction in equity markets has been a known threat for some time now," he said.
"But what triggered this sudden spike in the bond yield was the Fed chief Jerome Powell's statement that inflation may persist for a much longer time," the expert further said. Further, he noted that the rise in the dollar index to 93.7 levels indicates profit booking in the stocks and safe-haven buying into the dollar.
Elsewhere in Asia, bourses in Shanghai and Seoul were trading with gains, while Hong Kong and Tokyo were in the red in mid-session deals. Meanwhile, international oil benchmark Brent crude fell 0.27 percent to $77.88 per barrel.