Monday, March 27, 2023

Sensex: Sensex, Nifty fall for fourth straight day on concerns of US bank failure – Usky News

MUMBAI: The benchmark BSE Sensex on Tuesday closed nearly 338 points below the 58,000-mark, marking its fourth day of losses as auto, IT and financial stocks hit interest rate hikes and two US-based banks. Amidst the fallout from the failure of the ,
The 30-share BSE Sensex closed 337.66 points, or 0.58 per cent, at a five-month low of 57,900.19. It touched a high of 58,490.98 and a low of 57,721.16 during the day.
The broader NSE Nifty declined 111 points, or 0.65 per cent, to close at a five-month low of 17,043.30, with 38 stocks ending in the red.
The Sensex fell 2,447 points or 4.1 per cent, while the Nifty plunged 711 points or 4.6 per cent on Tuesday in four days.
Analysts said persistent foreign fund outflows, investors dumping riskier assets ahead of the US Fed policy decision and fears of interest rate hike impacting global economic recovery weighed on the market sentiment.
Mahindra & Mahindra was the biggest loser in the Sensex pack, shedding nearly 3 per cent, followed by TCS, Bajaj FinanceWipro, Kotak Bank, Tech Mahindra, HCL Tech and Tata Motors.
In contrast, Titan, Bharti Airtel, ICICI Bank and L&T were among the gainers rising up to 0.93 per cent.
Sectoral indices declined by 1.4 per cent in IT, 1.08 per cent in Tech, 1.06 per cent in Power, 1 per cent in Realty, 0.99 per cent in Auto, 0.54 per cent in Financials and 0.42 per cent in Bankex.
Only the Capital Goods index closed with a marginal gain of 0.12 per cent.
“Sales continued, while the degree of obscurity american bank The decrease is due to the supportive measures announced by the US Fed. The underlying issue of the market is high interest rates, which will continue to play havoc with the world economy. Vinod Nair, Head of Research, Geojit Financial Services, said, given the tighter monetary policy and higher inflation, the longer-term trend will take time to reverse.
“However, disruptive developments in US banks and a slowing economy have created a harbinger for speculation that yields will peak in the near future, supported by a shift in monetary policy to neutral, which will ease longer-term concerns.” investors,” Nair said.
Asia-Pacific markets declined on Tuesday and European bourses were mixed after overnight losses on Wall Street as investors waited for the collapse of failed banks in the US and monetary policy concerns, said Deepak Jasani, Head of Retail Research. Struggling with an uncertain path. HDFC Securities.
“Investors will be keeping a close eye on the US Consumer Price Index for February, which will be released on Tuesday,” he added.
Ajit Mishra, VP – Technical Research, Religare Broking Ltd said that continuing the prevailing trend, the market declined further and declined by over half a per cent.
After an initial decline, Nifty tried to recover losses in between but selling pressure in major indices from IT, banking and energy packs pushed the index below the psychological level of 17,000 for a brief intra-day.
On March 12, US regulators shut down Signature Bank, two days after shutting down Silicon Valley Bank, following massive withdrawals of customer deposits from these regional banks.
Most Asia Pacific financial institutions have no exposure to failed US banks and are not susceptible to large losses from debt security holdings like those of Silicon Valley Bank, Moody’s said on Tuesday.
In Asian markets, Shanghai, Tokyo, Hong Kong and Seoul closed with heavy losses.
However, European stock markets were mixed in afternoon trade. Wall Street’s major indices closed down in overnight trading.
Meanwhile, the rupee depreciated 26 paise to close at 82.49 against the US dollar on Tuesday.
International oil benchmark Brent crude closed down 1.56 per cent usd 79.51 per barrel.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,546.86 crore on Monday, according to exchange data.
Meanwhile, wholesale price-based inflation eased to a two-year low of 3.85 per cent in January on lower prices of manufactured articles, fuel and electricity, even as food items remained costlier.
Retail inflation eased marginally to 6.44 per cent in February, mainly due to a marginal decline in prices of food and fuel articles, though it remained above the Reserve Bank’s comfortable level of 6 per cent for the second month in a row.


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