sensex: Market Watch: What is the outlook on FII activity amid the fear of aggressive Fed rate hikes? | The Economic Times Podcast

– Soaring vegetable prices singe household budgets
– Commerce Minister Piyush Goyal wants $100 bn textile exports
– India ready to supply food to world, says PM Modi
– Sri Lanka to suspend foreign debt payments
– India set to miss 2022 solar target, says report
– No call yet on sanctions to India, says US Secretary of State Blinken

Let’s take a quick glance at what happened on Dalal Street today.

Domestic equity markets fell for the second straight day as a sharp rise in US bond yields amid fears of aggressive rate hikes by the Federal Reserve eroded risk appetite.

With analysts estimating the latest US inflation data at a multi-decade high of around 8 per cent, global markets fell, dragging down their Indian counterparts too.

Higher US rates dull the appeal of emerging market assets and could potentially spark fresh FPI outflows from equities.

Heavy selling pressure in IT, metals, media, realty and oil and gas counters brought the headline indices down although banking stocks saw some buying.

The fall in stock prices left investors poorer by Rs 3.2 lakh crore on Tuesday.

The BSE barometer Sensex swung in a band of 676 points before settling 388 points lower at 58,576.37. The index has given up over 1,034 points in the last five trading days.

Its broader peer, the Nifty50, just about managed to settle above the 17,500 mark, settling 145 points lower. The index, which moved in a band of 152 points on Tuesday, has lost 277 points over the last five sessions.

Broader markets fared worse than their headline peers, with the BSE midcap and smallcap indices each shedding 1.5 per cent. Fear gauge India VIX fell 0.6 per cent to end at 18.16.

On the 30-pack BSE Sensex, 21 stocks registered declines. Tata Steel was the biggest loser of the day with a 2.8 per cent fall, followed by Tech Mahindra which lost 2.3 per cent. Wipro and Bharti Airtel each lost 2.2 per cent, while Reliance shed 2 per cent.

Axis Bank led the gainers with a 1.8 per cent rise followed by Kotak Mahindra Bank, which added 1 per cent. Power Grid gained 0.8 per cent, while Maruti and ICICI Bank rose more than 0.5 per cent each.

As many as 9 stocks hit upper circuits during the session, while 1 tested its lower circuit limit. 59 stocks tested their 52-week highs during the day, whereas only 7 hit 52-week lows.

We have Ajit Mishra from Religare Broking to share his views on the action and the road ahead:

Welcome to the show sir:
1. Markets fell for the second straight day on Tuesday. What is the outlook on FII activity amid the fear of aggressive Fed rate hikes?
2. With bond yields rising sharply, are valuations a concern for equity investors at current levels?

We also caught up with Vaishali Parekh from Prabhudas Lilladher to decode the technical charts for you.
1. The Nifty50 barely managed to settle above the 17,500 mark. What do the technical charts suggest about it?
2. After a recent spate of weakness, the Bank Nifty today gained while the headline index fell. What is your outlook?

Asian markets ended mixed for the day. Major European markets were mostly down in the first few hours of trade. Meanwhile, US stock futures were down, signalling a weak start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!