Yellen's comments, demonetisation pull Swn 81 poiensex donts
MUMBAI, NOV 18:
The Sensex and Nifty were trading marginally down as US Federal Reserve Chair Janet Yellen has signalled an interest rate hike is imminent.
Sentiment at home was also hit by the government's move last week to remove high-value notes, disrupting daily lives of millions of Indians who live in a cash economy that is estimated to account for a fifth of the country's $2 trillion gross domestic product.
“There is a major liquidity issue in the domestic market due to the banknotes action and the volatility in the rupee because of rising US bond yields will likely continue for some time," said Vinod Nair, head of research at Geojit BNP Paribas Financial Securities.
“The 8,000 level for Nifty is very important, but the risk of it falling below that mark will be there as the market will continue to remain cautious for a while amid domestic and global uncertainties.”
At 3.15 pm, the 30-share BSE index Sensex was down 80.65 points or 0.31 per cent at 26,146.97 and the 50-share NSE index Nifty was down 7.05 points or 0.09 per cent at 8,072.90.
Among BSE sectoral indices, oil & gas index gained the most by 1.4 per cent, power 1.23 per cent, healthcare 1.19 per cent and realty 1.08 per cent, while consumer durables index was down 1.26 per cent, metal 1.24 per cent, FMCG 1.13 per cent and banking 0.67 per cent.
Top five Sensex gainers were NTPC (+4.81%), Sun Pharma (+2.67%), Bharti Airtel (+2.13%), Hero MotoCorp (+1.98%) and Bajaj Auto (+1.36%), while the major losers were Tata Steel (-2.09%), ITC (-2.04%), GAIL (-1.54%), Asian Paints (-1.36%) and HDFC Bank (-1.34%).
Rupee slumps
The rupee fell as low as 68.15 per dollar, its weakest since June 24, compared with the previous close of 67.82.
The fall came with the dollar vaulting to a 13-1/2-year high against a basket of major currencies as US bond yields rose after Yellen said the central bank could raise interest rates “relatively soon''.
The Nifty IT index was in positive territory after three straight sessions of falls with HCL Technologies up 1.8 per cent.
A local IT sector lobby group cut its growth forecast for 2016-2017, citing local and global factors.
All the stocks of the Nifty pharma index rose with Sun Pharmaceutical Industries 2.6 per cent higher and Aurobindo Pharma up 2.3 per cent.
Meanwhile, the NSE Bank index was 0.32 per cent lower with ICICI Bank declining as much as 1.1 per cent and State Bank of India shedding up to 0.67 per cent.
Asian share markets weakened on Friday as rising US bond yields carried the dollar to a more than 13-1/2 year high against a basket of major currencies, fuelled by expectations that President-elect Donald Trump’s policies will lead to higher interest rates.
The post-election shift in expectations has left Asian stocks vulnerable to investors potentially rotating funds out of emerging markets to the United States.
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The Sensex and Nifty were trading marginally down as US Federal Reserve Chair Janet Yellen has signalled an interest rate hike is imminent.
Sentiment at home was also hit by the government's move last week to remove high-value notes, disrupting daily lives of millions of Indians who live in a cash economy that is estimated to account for a fifth of the country's $2 trillion gross domestic product.
“There is a major liquidity issue in the domestic market due to the banknotes action and the volatility in the rupee because of rising US bond yields will likely continue for some time," said Vinod Nair, head of research at Geojit BNP Paribas Financial Securities.
“The 8,000 level for Nifty is very important, but the risk of it falling below that mark will be there as the market will continue to remain cautious for a while amid domestic and global uncertainties.”
At 3.15 pm, the 30-share BSE index Sensex was down 80.65 points or 0.31 per cent at 26,146.97 and the 50-share NSE index Nifty was down 7.05 points or 0.09 per cent at 8,072.90.
Among BSE sectoral indices, oil & gas index gained the most by 1.4 per cent, power 1.23 per cent, healthcare 1.19 per cent and realty 1.08 per cent, while consumer durables index was down 1.26 per cent, metal 1.24 per cent, FMCG 1.13 per cent and banking 0.67 per cent.
Top five Sensex gainers were NTPC (+4.81%), Sun Pharma (+2.67%), Bharti Airtel (+2.13%), Hero MotoCorp (+1.98%) and Bajaj Auto (+1.36%), while the major losers were Tata Steel (-2.09%), ITC (-2.04%), GAIL (-1.54%), Asian Paints (-1.36%) and HDFC Bank (-1.34%).
Rupee slumps
The rupee fell as low as 68.15 per dollar, its weakest since June 24, compared with the previous close of 67.82.
The fall came with the dollar vaulting to a 13-1/2-year high against a basket of major currencies as US bond yields rose after Yellen said the central bank could raise interest rates “relatively soon''.
The Nifty IT index was in positive territory after three straight sessions of falls with HCL Technologies up 1.8 per cent.
A local IT sector lobby group cut its growth forecast for 2016-2017, citing local and global factors.
All the stocks of the Nifty pharma index rose with Sun Pharmaceutical Industries 2.6 per cent higher and Aurobindo Pharma up 2.3 per cent.
Meanwhile, the NSE Bank index was 0.32 per cent lower with ICICI Bank declining as much as 1.1 per cent and State Bank of India shedding up to 0.67 per cent.
Asian share markets weakened on Friday as rising US bond yields carried the dollar to a more than 13-1/2 year high against a basket of major currencies, fuelled by expectations that President-elect Donald Trump’s policies will lead to higher interest rates.
The post-election shift in expectations has left Asian stocks vulnerable to investors potentially rotating funds out of emerging markets to the United States.
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