Sensex slumps after hawkish tone in RBI policy
The significant change is the upward revision in FY24 CPI inflation projection from 5.1 per cent to 5.4 per cent. This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25, he said. From the market perspective, there are no positive or negative surprises in the policy, he added.
Sharp dip in US 10-yr bond yield can once again favour renewed FPI buying
Cues from the US market are favourable; particularly the sharp 14bp dip in the US 10-year bond yield last Friday can once again favour renewed FPI buying, he added. Latest data from the US indicate a slight cooling of the economy but the labour market continues to be strong. Markets will be keenly watching the July CPI print for clues on the Fed decision in August.
Sensex now down more than 500 points
Titan led the Sensex losses down more than 2 per cent. Morgan Stanley has upgraded India to overweight. India rises from number 6 to number 1 in our process, with relative valuations less extreme than in October, while MS macro, strategist and bottom-up analyst scores reflect MS' Blue Paper thesis on India's Decade.
Sensex slumps over 600 points to fall below 66k mark
Sensex was trading down 628 points at 65,830 points. Twenty-seven stocks out of Sensex 30 were in the red, with NTPC and Tata Steel down more than 2 per cent. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. said the major news after market close yesterday is the rating agency Fitch’s downgrade of US sovereign rating from AAA to AA+.
Market rally is stretching valuations beyond comfort levels, say analysts
The resilience of the US market, where the rally is spreading to the broader market, is supporting global markets. But the rally is stretching valuations beyond comfort levels, he said. The FY24 Q1 earnings growth is muted except in banking and refineries. Results indicate that rural demand is yet to pick up in a meaningful manner, he said.
Markets to remain volatile with new high looking difficult currently
At the end of the week, BSESENSEX lost 524.06 points or 0.79 per cent to close at 66,160.20 points while NIFTY lost 98.95 points or 0.50 per cent to close at 19,646.05 points. The broader markets saw BSE100, BSE200 and BSE500 lose 0.15 per cent, gain 0.14 per cent and 0.29 per cent respectively. BSEMIDCAP was up 2.07 per cent while BSESMALLCAP was up 1.18 per cent.
Bull run indicates confidence of markets in India's growth trajectory
With the Lok Sabha elections scheduled for 2024, the general sentiment is that India is likely to be among the few emerging markets globally, which may continue to hit an all-time high in the long run in terms of economic growth.
Nifty remained under pressure but showed some recovery in late trade
Sectorially, it was mixed with major buying seen in Realty (+1.8%). Power stocks were in the limelight on the back of attractive valuations and huge investments in the sector.
Sensex plunges below 66k mark
The headwinds for the markets come from the US 10-year yield rising sharply to 4 per cent, the dollar index rising to 101.7, Brent crude rising above $83 and FPIs selling stocks for Rs 3979 crores in the cash market on Thursday, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
M&M group stocks under pressure after investment in RBL Bank, Tech Mahindra’s weak earnings miss
On Wednesday, it made an announcement of acquiring a 3.53 per cent stake in RBL Bank as an investment at a cost of Rs 417 crore. “We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance will it exceed 9.9 per cent”, M&M said in a filing.