Sensex opens 600 points lower, Nifty below 23,500; Tata Steel falls 2%
The BSE Sensex fell 389.19 points, or 0.52%, to 74,811.66 in early trade, while the NSE Nifty50 dropped 107.90 points, or 0.46%, to 23,510.10 as of 9:39 am.
Benchmark stock market indices opened lower on Wednesday, triggered by uncertainty in the West Asia war and the falling rupee.
The BSE Sensex fell 389.19 points, or 0.52%, to 74,811.66 in early trade, while the NSE Nifty50 dropped 107.90 points, or 0.46%, to 23,510.10 as of 9:39 am.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that globally stock markets are facing a headwind from rising bond yields.
"In US, the 10-year is yield is at 4.66% and the 30 - year yield has spiked to 5.19% – the highest level in the last 22 years. This is a red flag to equity markets. With the risk-free return at such high levels, the appetite for risky equity should decline. This is more valid in the case of highly valued AI stocks. But then markets have an ability to surprise and, therefore, the correction need not happen at a time when everyone expects," he added.
After the opening bell, Sun Pharmaceutical Industries Ltd led the Sensex gainers, rising 0.20%. It was followed by Adani Ports and Special Economic Zone Ltd, which gained 0.09%.
Bharat Electronics Ltd saw the sharpest fall, dropping 3.04%. Tata Steel Ltd declined 2.65%, Eternal Ltd slipped 1.58%, UltraTech Cement Ltd was down 1.22%, and State Bank of India Ltd fell 1.04% in early trade.
"In India the market headwind comes from macro concerns. In FY 27 GDP growth will be lower at around 6% and inflation can be higher at about 5.5%. It appears that the market has already discounted this," said Vijaykumar.
"Even during market weakness, there will be good appetite for promising growth stocks. As a measure of abundant caution investors should give priority to value stocks which are available at fair valuations now. These are testing times. Patience is the key to success," he added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices opened lower on Wednesday, triggered by uncertainty in the West Asia war and the falling rupee.
The BSE Sensex fell 389.19 points, or 0.52%, to 74,811.66 in early trade, while the NSE Nifty50 dropped 107.90 points, or 0.46%, to 23,510.10 as of 9:39 am.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that globally stock markets are facing a headwind from rising bond yields.
"In US, the 10-year is yield is at 4.66% and the 30 - year yield has spiked to 5.19% – the highest level in the last 22 years. This is a red flag to equity markets. With the risk-free return at such high levels, the appetite for risky equity should decline. This is more valid in the case of highly valued AI stocks. But then markets have an ability to surprise and, therefore, the correction need not happen at a time when everyone expects," he added.
After the opening bell, Sun Pharmaceutical Industries Ltd led the Sensex gainers, rising 0.20%. It was followed by Adani Ports and Special Economic Zone Ltd, which gained 0.09%.
Bharat Electronics Ltd saw the sharpest fall, dropping 3.04%. Tata Steel Ltd declined 2.65%, Eternal Ltd slipped 1.58%, UltraTech Cement Ltd was down 1.22%, and State Bank of India Ltd fell 1.04% in early trade.
"In India the market headwind comes from macro concerns. In FY 27 GDP growth will be lower at around 6% and inflation can be higher at about 5.5%. It appears that the market has already discounted this," said Vijaykumar.
"Even during market weakness, there will be good appetite for promising growth stocks. As a measure of abundant caution investors should give priority to value stocks which are available at fair valuations now. These are testing times. Patience is the key to success," he added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
