Sensex, Nifty tank around 1 pc as global equities sink on rate hike worries
Benchmark stock indices Sensex and Nifty plunged by around 1 per cent on Tuesday due to sharp losses in auto, metal, and realty stocks amid a global rout in equities triggered by rising US bond yields and a spike in crude oil.
The 30-share index slumped by 554.05 points or 0.90 per cent to end at 60,754.86 with 23 of its constituents ending in the red.
''A surge in oil prices and FIIs turning net sellers added volatility in the domestic market. Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries while oil prices rose on supply tension owing to the drone attack on UAE,'' Vinod Nair, Head Of Research at Geojit Financial Services, said.
Deepak Jasani, Head of Retail Research, HDFC Securities, said that Nifty closed below the lows of the previous four sessions. ''Weak global cues resulted in this weakness even as traders opted to take profits after a dream uprun in mid and small-caps,'' he said.
''Asia's share markets turned negative on Tuesday as two-year U.S. Treasury yields topped 1 per cent for the first time in almost two years. European markets opened lower with technology underperforming amid concerns about faster tightening from the Fed and rising yields,'' he added.
''Markets took a break from the recent upsurge as bears took control after weak Asian and European cues prompted investors to book profit. As a result, the Nifty has formed a long bearish candle which suggests further weakness from the current levels.
Meanwhile, international oil benchmark Brent crude surged 1.13 per cent to USD 87.46 per barrel following an attack on an oil facility in the capital of the United Arab Emirates that killed at least three people.
Foreign institutional investors (FIIs) were net sellers in the capital market, as they sold shares worth Rs 855.47 crore on Monday, according to stock exchange data.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)