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  Business   Market  19 May 2018  Sensex dips for 4th straight day

Sensex dips for 4th straight day

THE ASIAN AGE.
Published : May 19, 2018, 1:51 am IST
Updated : May 19, 2018, 1:51 am IST

According to the provisional data, foreign portfolio investors sold shares worth Rs 166.15 crore.

Panic will strike if and when US bond yields reach the 4 per cent mark.
 Panic will strike if and when US bond yields reach the 4 per cent mark.

Mumbai: The equity markets extended their fall for the fourth consecutive day as firmness in global crude prices, rising bond yields and weakness in rupee continued to raise concerns regarding India’s macro economic health. The uncertainty over the formation of government in Karnataka also weighed on sentiments.

The Sensex slumped 300.82 points or 0.86 per cent to end the day at 34,848.30 while the Nifty fell 86.30 points or 0.81 per cent to close at 10,596.40.  

“Rising crude, bond yields and dollar had been the worries of market from quite some time in terms of its impact on fiscal deficit, inflation and RBI policy. Crude prices are also supported by voluntary supply cuts deal by Opec and so far the Opec members have not shown any signs of ending the deal to ramp up output. Further rise in crude prices or rising yields is likely to be negative for markets,” said Teena Virmani, vice-president, research, Kotak Securities.

According to the provisional data, foreign portfolio investors sold shares worth Rs 166.15 crore.

Looking ahead, Jimeet Modi, CEO and founder Samco Securities said the markets would remain volatile with a corrective bias since majority of the companies have declared their quarterly results there is concern regarding rise in interest rates.

“US bonds yields are kissing their 7-year highs and there is no reason why it can’t still go higher, which will keep the markets under pressure. Panic will strike if and when US bond yields reach the 4 per cent mark. Till that time, it will certainly have negative influence,” he added.

While volatility is likely to remain due to negative global cues and FPIs selling, Mrs Virmani said this volatility should be used to add stocks expecting a recovery in corporate earnings growth due to government spending and consumption revival. 

Tags: equity markets, crude prices, sensex, rbi policy