Sensex falls mirroring weakness in global markets
global markets, as the continued surge in the US benchmark 10-year bonds to a 17-year high resulted in risk-off sentiment intensifying. Foreign portfolio investors dumped shares worth ₹4,424 crore during the day, with bank and auto stocks facing the biggest brunt of the selloff.
The Sensex dropped 286 points, or 0.4%, to close at 65,226.
Nifty declined 90.3 points to close at 19,438. Both indices had fallen as much as 1% earlier in the day but managed to cut losses thanks to late strength in IT stocks.
The Nifty Bank index fell nearly 1%, while the NSE IT index gained 0.3%. The US Dollar index has breached its resistance level of 106 which led to a selling in all global indices," said Aamar Deo Singh senior vice president at AngelOne.
“The US Dollar index has breached its resistance level of 106 which led to a selling in all global indices,” said Aamar Deo Singh senior vice president at AngelOne.
“Along with this, crude oil sustaining above the $90/barrel mark has curtailed the power of central banks to cut rates, and the pressure will sustain till the prices come down.”
At home, the broader markets fell sharper than the blue-chips.
The Nifty Midcap 150 index dropped 1.3% and the Nifty Small-cap 250 fell 1.13%. Domestic institutions were buyers to the tune of Rs 1,769.49 crore, as per BSE data.
Analysts see the likelihood of the weakness in the market to continue for a bit but see a rebound soon.
“Nifty has a downside risk of 19,120 levels and Sensex could fall up to 63,900,” said Rohit Srivastava, a Mumbai-based technical analyst and founder of Strike, a trading platform.
