The Sensex today witnessed a sharp decline of 550 points, with the Nifty slipping below the 22,150 mark in the midst of ongoing concerns about heightened tensions in the Middle East and uncertainty surrounding the US Federal Reserve’s rate cut outlook. This marks the third consecutive session of weakness in domestic benchmark indices. Asian markets also experienced significant declines, while US indices closed notably lower on Monday, further dampening sentiment on Dalal Street today.
Across major sectors on the NSE, all indices were in negative territory, with the IT sector being the worst performer, witnessing a decline of over 1%.
Key highlights of the trading session include the rupee hitting a fresh record low, crossing the 83.50 mark against the US dollar. Additionally, Jefferies initiated coverage on Bharti Hexacom with a Buy rating, while Morgan Stanley initiated coverage on Varun Beverages.
Two primary concerns, one economic and the other geopolitical, are expected to continue weighing on the markets in the near term. Economically, rising US bond yields are diminishing the prospects of Fed rate cuts this year, which could negatively impact risky assets such as equities and lead to increased selling by foreign institutional investors (FIIs) in emerging markets like India.
Geopolitically, uncertainty surrounds the timing and nature of the Israeli response to recent events, contributing to market weakness in the short term.
In terms of market action, some stocks hit their 52-week highs, including Aegis Logistics, DOMS Industries, and Aditya Birla Capital, while others reached their 52-week lows, such as HUL, Bata India, and Bandhan Bank. Earnings announcements for the day include Crisil, SG Mart, Den Networks, Integra Essentia, Lotus Chocolate, and Shree Ram Properties.
