Sensex dropped 137 points as markets face pressure to sell fag-end

Sensex dropped 137 points as markets face pressure to sell fag-end

Stock exchanges in the US had ended on a mixed note on Thursday. Meanwhile, international oil benchmark Brent crude jumped 1.09 percent to USD 108.6 per barrel. Continuing their selling spree, foreign institutional investors offloaded shares worth a net Rs 5,255.75 crore on Thursday, according to stock exchange data. ”This is the season of headwinds for markets. High inflation in the US and the hawkish Fed has pushed up bond yields, negatively impacting equity markets. ”FPIs continue their selling spree further impacting sentiments. To top it all, CPI inflation for April has come at a disturbingly high level of 7.79 percent, leaving no option for RBI but to turn hawkish in the coming policy meets,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Story Highlights

  • Among the Sensex firms, State Bank of India, ICICI Bank, NTPC, Bharti Airtel, Bajaj Finserv, Axis Bank, and Maruti were the biggest laggards. In contrast, Sun Pharma, M&M, ITC, Hindustan Unilever, Titan, and Reliance were among the gainers. Markets in Asia settled higher, with Tokyo, Hong Kong, Seoul, and Shanghai gaining significantly. Bourses in Europe were quoting higher in the afternoon session.

  • Vijayakumar added that the positive side is that all this bad news is already known and factored in by the market. India’s headline inflation galloped for a seventh straight month to touch an 8-year high of 7.79 percent in April on rising food and fuel prices, raising the odds of an interest rate hike by the RBI early next month to tame prices.