Covid, crude resurgence spooks investors, banking stocks plunge (Roundup)


Mumbai, Feb 22 | Rising domestic Covid-19 cases, along with that of crude oil prices as well as expectations of rising inflation, dragged Indian equity market indices lower for the fifth consecutive session.

Besides, subdued global markets and re-allocation of foreign funds out of India further dented investors’ sentiments.

On Monday, the India Volatility Index rose the most in two months ending 14.5 per cent higher at 25.47.

This spooked FIIs who turned net sellers to the tune of Rs 893.25 crore in the BSE, the NSE and the MSEI in the capital market segment.

Globally, Asian stocks ended mostly lower amidst lingering worries about inflation, high valuations and worries over policy tightening.

Similarly, European markets opened lower as caution over sharply rising inflation, outweighed increasing optimism over the vaccine rollout programme, and the path to an economic reopening.

On the domestic front, 10 Year Gsec yields touched a 6 month high of 6.19 per cent.

The S&P BSE Sensex closed at 49,744.32, down 1,145.44 points, or 2.25 per cent, from its previous close of 50,889.76 points.

The Nifty50 on the National Stock Exchange closed at 14,675.70, lower by 306.05 points, or 2.04 per cent.

“Nifty has fallen 5 per cent from its all time high in about 5 sessions. Indian equities came under selling pressure due to cautious trade in markets abroad, slowing FPI inflows, profit taking and breach of key technical levels,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Rising crude oil prices that could impact the macros and inflation and rising 10 year Gsec yields were the key local factors that shook the equity markets.”

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: “Global cues were weak as yields on the benchmark US 10-year Treasury notes rose to a one-year high, thus worrying investors that money might move away from emerging markets.”

“Further, there were concerns over the risk of higher inflation due to sharp jump in commodity prices which tempered optimism around a vaccine-led economic recovery.”

Khemka added that a sudden spike in VIX along with sustained selling pressure has caused the fear and worry about further profit booking led to a decline in the market.

“Going ahead the market may continue with its profit booking for some time till the concerns over rising bond yields and inflation recedes.”

Vinod Nair, Head of Research at Geojit Financial Services, said: “Rising economic restrictions from spike in virus cases and weak global cues hit the domestic market sentiment. The rate of market fall was aggravated by a sharp rise in volatility, being a monthly F&O expiry week.”

“FPI inflows which was leading the rally slowed down due to global vulnerabilities from rising bond yield and inflation. However, this is a buy on dip market, a short-term correction will trigger new buying, as economic fundamentals have improved, with more focus on industrial and cyclicals.”

Source: IANS

Sponsors Posts

Global Strategist and Philanthropist Drummi Bhatt returns to her homeland to bring about a vernacular infotainment content revolution

Global Strategist and Philanthropist Drummi Bhatt returns to her homeland to bring about a vernacular infotainment content revolution

Drummi Bhatt has successfully donned many hats including that of a global strategy professional, mentor, and investor to early-stage startups encouraging women entrepreneurship, and a philanthropist.

Drummi currently leads Market Intelligence and Strategy team at Mitsubishi Power, USA building corporate-level strategies for global markets. Drummi is also the founder of KarmaKonnect, a Woman and Rural Empowerment Non-Profit Organisation which works for projects in remote rural, tribal, and conflict areas.

Her philanthropy work has taken her to various corners of India, including, far end corners of Leh, Ladakh, Telangana, and remote areas of Chambal. During these visits, she got mesmerized by culturally rich, vernacular, and diverse, the true “Bharat”.

During her interaction across the country, she got enchanted by the whirlwind of talent residing across Bharat, which is not restricted to a language, city, or just tier-1 cities but is found in abundance all across tier-2, tier-3 cities, and rural-tribal clusters.

With OTT platforms ruling the world in 2020, Drummi decided to bring her strategic insights and data analytics strength to this field by joining hands with seasoned entrepreneurs, Rahul Narvekar and Narendra Firodia, to launch its kind, vernacular OTT platform, Letsflix.

In 2019, Drummi, Rahul, and Narendra have successfully launched India’s first vernacular infotainment app, LetsUp, which now caters to 1.5 million users and in 7 vernacular languages, a feat achieved by none. The trio has now been passionately working towards creating and delivering vernacular content for every viewer in India with Letsflix.


Please enter your comment!
Please enter your name here