sensex: Market Watch: Does rise in bond yields threaten appeal of equities? | The Economic Times Podcast

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Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Bhaskar Dutta and here are the top headlines at this hour.
-Maruti Suzuki to hike vehicle prices in April
-India’s services activity edged up in March
-AirAsia resumes flights between India & Malaysia
-ADB sees India’s growth at 7.5% in FY23
-BSNL to install 1.12 lakh towers for 4G

Let’s take a quick glance at what happened on Dalal Street today.
Domestic equity markets tumbled on Wednesday as fresh hawkish comments by a member of the US Federal Reserve strengthened speculation of the central bank hiking rates aggressively.

The US dollar index rose to a two-year high, while the 10-year US bond yield surged past the 2.5 per cent mark.

US interest rates heading higher at a firm clip would diminish the appeal of Indian financial assets, potentially leading to large outflows of overseas investment. The latest commentary by the Fed comes at a time when FIIs have just begun to buy domestic stocks after massive sales in January-March.
Profit-booking in index heavyweights HDFC and HDFC Bank also dragged headline indices lower.

The BSE barometer Sensex swung in a band of 432 points before settling 566 points lower at 59,610.41. The index has gained 1,041 points over the last five trading days.

Its broader peer, Nifty50, lost 150 points but managed to settle just above the 17,800-mark.

Broader markets fared slightly better than their headline peers, with the BSE midcap and smallcap indices declining 0.4 per cent each. Fear gauge India VIX gained 2.9 per cent to end just above the 19 mark.

20 of the 30 stocks on the BSE Sensex fell, with a 4% fall, making HDFC Bank the biggest loser. HDFC and HCL tech lost 3% and 2%, respectively, while Tech Mahindra and Infosys shed more than 1.5% each.

NTPC and Tata Steel led the gainers for the day, rising 3% and 2%, respectively. Power Grid added 1.5%, while Bharti Airtel rose 1.2%.
7 stocks hit their upper circuit during the session, while 5 tested their lower circuit limits. 90 stocks tested their 52-week highs, while only 4 tested their 52-week lows.

We have Vikas Jain from Reliance Securities to share his views on the action and the road ahead. Welcome to the show sir:

1. Markets took a tumble today after a fresh hawkish turn by the Fed. Given the possibility of aggressive US rate hikes, could FIIs again start exiting Indian equities?
2. Globally, bond yields have climbed sharply of late. From a domestic equity valuation perspective, does the rise in bond yields threaten the appeal of equities?

We also caught up with Vaishali Parekh of Prabhudas Lilladher to decode the technical charts for you.
1. The Nifty50 settled just above the 17,800 level. What do the technical charts suggest about it?
2. For the second straight day, Nifty Bank fared worse than the headline index. What is your outlook?

Asian markets settled with losses for the day. Major European markets too were trading lower in the first few hours of trade. Meanwhile, US stock futures were down, signalling a negative start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!



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