The triple whammy of rising greenback, spiking US bond yields and excessive Brent crude continues to impression Indian fairness markets, says V.Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The cues from the US are also adverse. It seems that the market is pricing in a ‘greater for longer’ charge regime in the US, which isn’t beneficial to fairness markets in the near-term, he mentioned.
The ‘purchase on dips’ texture of the market which took the Nifty past 20,000 has now modified to ‘promote on rallies’, he mentioned.
Bulk of the promoting has been coming from FIIs who’ve cumulatively offered in the money marketplace for Rs 21,287 crore in September, up to now. Since the greenback index is now above 106 and the US 10-year yield is powerful round 4.55 per cent, FIIs are more likely to proceed promoting, rendering the market weak, he added.
Large banking shares are more likely to stay weak on FII promoting. Long-term buyers can use this weak spot to purchase prime quality personal banks and the main PSU banks because the banking sector will proceed to do nicely, going ahead. Importantly, valuations in the banking section are honest, he mentioned.
BSE Sensex is buying and selling down 53 factors at 65,892 factors on Wednesday.
(With inputs from IANS)