Markets opened in the red on Friday, with the equity benchmark Sensex plunging over 600 points in early trade on Friday, tracking losses in HDFC Bank, L&T and Reliance Industries amid negative cues from global markets.
The 30-share BSE index traded 617.10 points or 1.25 per cent down at 48,599.42, and the broader NSE Nifty fell 201.35 points or 1.38 per cent to 14,356.50. ONGC was the top loser in the Sensex pack, slumping around 5 per cent, followed by L&T, Bajaj Finance, M&M, Maruti, SBI, Titan, HDFC twins and Reliance Industries. Kotak Bank, Bharti Airtel and PowerGrid were the gainers.
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In the previous session, Sensex ended 585.10 points or 1.17 per cent lower at 49,216.52, and Nifty slumped 163.45 points or 1.11 per cent to 14,557.85.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 1,258.47 crore, as per exchange data.
Domestic equities do not look inspiring for the day. Intensifying concerns pertaining to the recent surge in coronavirus cases in various parts of the country have clearly dented investors’ sentiments in domestic markets, says Binod Modi, Strategy Head at Reliance Securities. A sharp spike in the US treasury yields and inflationary concerns also weighed on sentiments, he says.
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“US equities finished sharply lower on Thursday as investors dealt with twin threats of rising bond yields and sliding oil prices. The 10-year US Treasury yield surged 9 basis points on Thursday to 14-month high to 1.73 per cent despite Federal Reserve maintaining its dovish stance on interest rates,” Modi says.
On the currency front, the rupee opened firm at 72.66 against the US dollar in the opening trade on Friday morning, The US Dollar is on the higher side as Treasury yields surged above 1.7 per cent in expectation of higher inflation. Technically, the USDINR future took the support of 72.40 levels, which is a strong position.
“We believe the USDINR future is likely to open around 72.70 in the next session and if it crosses 72.80 levels then we may expect strong momentum towards 73.10. The trading range will likely to be around 72.55 -72.90,” says Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research Limited.
The darkening second wave of Covid-19 outbreak has also cast a shadow on the markets in India with the number of fresh cases of infection reaching near 40,000 on Friday and death toll rising to 154.
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