AgenciesTracking weak cues from Asian peers, domestic benchmark equity indices opened with hefty cuts on Monday led by selling in banking stocks and index heavyweights such as and .
At 10.10 am, the BSE Sensex tumbled 872 points or 1.5% to 57,226 while Nifty50 traded dangerously close to 17,000 mark at 17,034, down 293 points or 1.69% lower.
Amid a surge in US bond yields and the US dollar index, the rupee on Monday opened 0.68% lower to hit a fresh record low of 81.55 against the greenback.
While the 2-year US Treasury yield was at 4.2%, its highest level since October 12, 2007, the dollar index scaled past the 114-mark overnight to a two-decade high.
The US and European markets fell on Friday with the dollar hitting 22-year high and sell off in bonds due to fear of aggressive rate hikes by central bankers to tame inflation.
At 9.21 am (IST), Asian markets were trading lower, China’s Shanghai Composite, South Korea’s Kospi and Japan’s Nikkei fell 0.08 per cent, 2.41 per cent and 2.35 per cent.
V K Vijayakumar, Chief Investment Strategist at said that the global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73 per cent is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days.
The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5 per cent cut in MSCI World Index last week indicates the bearish undertone of global equity markets, Vijayakumar added.
“In this scenario the buy on dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant,” Vijayakumar said.
Among Sensex stocks, Power Grid Corp fell 5.13 per cent to Rs 192.20. Maruti Suzuki, M&M, Tata Steel and Axis Bank declined 2.62 per cent, 2.55 per cent, 2.11 per cent and 1.69 per cent, respectively.
Sectorally, the Nifty Auto tumbled 2.38 per cent, while Nifty Metal declined 2.20 per cent. Nifty PSU Bank and Nifty Realty also opened lower. Nifty Midcap50 and Smallcap50 fell 1.61 per cent and 1.82 per cent
On Friday, US markets ended lower, S&P 500, Dow and Nasdaq declined 1.72 per cent, 1.62 per cent and 1.80 per cent, respectively.
At 10.10 am, the BSE Sensex tumbled 872 points or 1.5% to 57,226 while Nifty50 traded dangerously close to 17,000 mark at 17,034, down 293 points or 1.69% lower.
Amid a surge in US bond yields and the US dollar index, the rupee on Monday opened 0.68% lower to hit a fresh record low of 81.55 against the greenback.
While the 2-year US Treasury yield was at 4.2%, its highest level since October 12, 2007, the dollar index scaled past the 114-mark overnight to a two-decade high.
The US and European markets fell on Friday with the dollar hitting 22-year high and sell off in bonds due to fear of aggressive rate hikes by central bankers to tame inflation.
At 9.21 am (IST), Asian markets were trading lower, China’s Shanghai Composite, South Korea’s Kospi and Japan’s Nikkei fell 0.08 per cent, 2.41 per cent and 2.35 per cent.
V K Vijayakumar, Chief Investment Strategist at said that the global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73 per cent is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days.
The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5 per cent cut in MSCI World Index last week indicates the bearish undertone of global equity markets, Vijayakumar added.
“In this scenario the buy on dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant,” Vijayakumar said.
Among Sensex stocks, Power Grid Corp fell 5.13 per cent to Rs 192.20. Maruti Suzuki, M&M, Tata Steel and Axis Bank declined 2.62 per cent, 2.55 per cent, 2.11 per cent and 1.69 per cent, respectively.
Sectorally, the Nifty Auto tumbled 2.38 per cent, while Nifty Metal declined 2.20 per cent. Nifty PSU Bank and Nifty Realty also opened lower. Nifty Midcap50 and Smallcap50 fell 1.61 per cent and 1.82 per cent
On Friday, US markets ended lower, S&P 500, Dow and Nasdaq declined 1.72 per cent, 1.62 per cent and 1.80 per cent, respectively.
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