The Nifty hovers around 19,500 while the Sensex experiences a 420-point dip. HCL Technologies, Dr Reddy’s Laboratories, TCS, ONGC, and Infosys are leading volatile stocks gainers. Adani Ports, Hero MotoCorp, BPCL, M&M, and Tata Steel face losses. Apart from IT, sectors like auto, capital goods, power, realty, oil & gas, and PSU Bank show declines ranging from 1.0% to 2.5%.
Oil Prices Surge Over 4% After Israel Getting Under Hamas Fire
Oil prices spiked by more than 4.0% after attacks by Hamas in Israel resulted in hundreds of casualties. While Australia’s stock market opens slightly higher, Hong Kong’s trading is delayed due to a typhoon. South Korean and Japanese markets are closed for a holiday. The S&P 500 gained 1.2% on Friday, breaking a four-week losing streak. Nasdaq 100 also saw a 1.7% surge, with tech giants like Microsoft, Apple, and Nvidia leading the rally.
Trending Stocks Indices Show Gains for the Second Consecutive Day
The GIFT Nifty, indicating early Nifty 50 Index performance, remains steady at 19,817.5. Realty and pharma stocks led the benchmark indices to a higher close for the second consecutive day. However, overseas investors continue to be net sellers of Indian equities for the 13th straight session, with foreign portfolio investors selling stocks worth Rs 90.3 crore.
Concerns Rise as S&P 500’s Bond Proxies Face Significant Losses
Rising Treasury yields have unsettled the US equity market, particularly affecting stocks known for bond-like qualities. While rising yields generally impact growth stocks, sectors like utilities and consumer staples, often termed as “bond proxies,” have witnessed steep losses. These sectors, known for stable dividends, have been favoured as safe harbours during market turbulence.
Stock Market Flotation as S&P 500 Gains Erode
Over 180 stocks in the S&P 500 are now trading below their value from a year ago. Concerns of an extended bear on the market arise as the Federal Reserve signals sustained elevated interest rates. The S&P 500’s recent rally might not be sufficient to prevent further decline, potentially leading to a test of March lows around 3,900.
Stock Market Forecast: Interest Rates Shape Market Sentiment
As earnings reports approach, investors await insights into how recent economic strength has translated into corporate profits. Tech giants, pivotal in this year’s volatile stocks gains, will be under scrutiny. While inflation and Fed policies pose risks, the economy’s resilience in the face of aggressive rate hikes is a double-edged sword. The market remains cautiously optimistic yet watchful of potential headwinds.