Bears Tighten Grip On D-Street! Sensex Down 600 pts, Nifty Below 19,400; All Sectors In Red

Sensex Today: Equity benchmark indices remained on shaky ground on Wednesday as surging US yields continued to dent global market sentiment. The market capitalisation of all listed companies on BSE declined by Rs 3.23 lakh crore to Rs 315.98 lakh crore. Sensex plunged 603 points to 64,908 in early trade; Nifty declined 167 points to 19,361.

From the Sensex stocks, Maruti, UltraTech Cement, Bajaj Finserv, Tata Steel, and HDFC Bank were trading lower, while only Nestle India and HUL were trading higher.

On the sectoral front, Nifty Auto fell 1.22 per cent, dragged by TVS Motor, Maruti Suzuki, and M&M. Nifty Bank also declined 0.9 per cent, dragged by IDFC First Bank, Axis Bank, and IndusInd Bank.

In the broader market, Nifty Midcap 100 plunged 0.7 per cent, and Nifty Smallcap 100 dropped 0.37 per cent.

“Global cues are negative for markets in the near-term. The sustained rise in the US bond yields, which has triggered continuous FII selling, is showing no signs of abating,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

“The dollar index is now clearly above 107 and the US 10-year bond yield is at 4.83%. This means FIIs will continue to sell and the bulls will be on the back foot,” Vijayakumar added.

Deepak Jasani, Head of Retail Research at HDFC Securities, said, “Nifty could now remain in the 19310-19674 band for the near term with a downward bias. However, the broader market continues to be doing well. This could get disrupted only on large back to back losses in the Nifty.”

Global Cues

Asian stocks fell to a 11-month low on Wednesday after another piece of resilient US economic data sent Treasury yields to fresh highs, while a sharp rise in the yen had traders speculating that Japanese authorities stepped into the market.

Tokyo stocks opened lower on Wednesday, extending falls on Wall Street, while the dollar briefly topped 150 yen overnight in a reflection of surging US Treasury yields.The benchmark Nikkei 225 index was down 1.49 per cent, or 464.40 points, at 30,773.54 in early trade, while the broader Topix index slipped 1.33 per cent, or 30.33 points, to 2,245.14.

The S&P 500 index closed at its lowest level since June 1 on Tuesday as economic data underscored the view the Federal Reserve may need to keep interest rates high.