Updated: March 4, 2021 4:17:06 pm
The benchmark equity indices on the BSE and National Stock Exchange (NSE) fell over 1 per cent on Thursday tracking weakness in the global markets.
The S&P BSE Sensex slipped 598.57 points (1.16 per cent) to end at 50,846.08, while the broader Nifty 50 settled at 15,080.75, down 164.85 points (1.08 per cent).
HDFC twins – comprising of HDFC Bank and Housing Development Finance Corporation (HDFC) were the biggest contributor to Sensex’s fall on Thursday. They were followed by Reliance Industries (RIL) and ICICI Bank.
Over the previous three sessions, the Sensex had risen by 2,344.66 points or 4.77 per cent, while the Nifty had added 716.45 points or 4.93 per cent.
Among the sectoral indices, the Nifty Metal index fell 2.01 per cent on Thursday weighed by Hindustan Copper, Jindal Steel & Power and JSW Steel. Apart from this, the Nifty Financial Services index slipped 1.80 per cent dragged by HDFC and Bajaj Finserv. The key Bank Nifty also fell 1.56 per cent dragged by Axis Bank, HDFC Bank and State Bank of India (SBI).
“Domestic markets along with its global peers mirrored the wounded trend of the US market. The surge in US bond yields added selling pressure in technology stocks, forced Wall Street to close lower. Blue-chips were much affected by the weak global cues, but Mid & Small caps with its increased investor confidence retained its positive momentum,” said Vinod Nair, Head of Research at Geojit Financial Services.
Worries about lofty US bond yields hit global shares on Thursday as investors waited to see if Federal Reserve Chair Jerome Powell would address concerns about a rapid rise in long-term borrowing costs.
The spectre of higher US bond yields also undermined low-yielding, safe-haven assets, such as the yen, the Swiss franc and gold.
Benchmark 10-year US Treasuries slipped to 1.453 per cent. They earlier touched their highest levels since a one-year high of 1.614 per cent set last week on bets on a strong economic recovery aided by government stimulus and progress in vaccination programmes.
The Euro STOXX 600 was down 0.5 per cent and London’s FTSE 0.6 per cent lower.
The MSCI world equity index, which tracks shares in 49 countries, lost 0.5 per cent, its third day running of losses.
The MSCI’s ex-Japan Asian-Pacific shares lost 1.8 per cent, while Japan’s Nikkei fell 2.1 per cent to its lowest since Feb. 5.
E-mini S&P futures slipped 0.2 per cent. Futures for the Nasdaq, the leader of the post-pandemic rally, fell 0.1 per cent, earlier hitting a two-month low.
–global market input from Reuters
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