stock market today Markets were boosted on Wednesday from two days of gains as inflation rose and investors worried about aggressive central bank policies. India’s benchmark 10-year yield edged down to 7.41 percent from 7.48 percent a year earlier. Asian stocks fell in volatile trading as Wall Street’s rally did not last overnight, while the Japanese yen hit a 24-year low against the dollar. BSE Sensex fell 700 points while NSE Nifty slipped below 15,400, BSE’s market cap fell 3.36 lakh crore to 237.27 lakh crore from Rs 240.63 lakh crore the day before.
dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said: “The pullback rallies can be intensified and yesterday was bullish. The important question is, will this continue? There is no economic news other than the softening in Crude Oil that the rally should continue. There is no reason for FIIs to change their selling strategy as the dollar remains strong and US bond yields are attractive and should continue to rise. The large caps, which rose sharply yesterday, are fundamentally strong stocks. As such, the best investment strategy now is to buy these high-quality names in small amounts on dips. ,
Here are the main reasons for the market decline today:
Jerome Powell’s testimony
Federal Reserve Chair Jerome Powell is set to begin his testimony before Congress later in the day, with investors looking for more clues as to whether another 75 basis point rate hike is on the cards at the Fed’s July meeting. . The Fed may continue to hike rates aggressively, although concerns about a slowdown in the world’s largest economy are mounting, weighing on investor sentiment. As a result, there was some caution among market participants prior to Powell’s statement.
Weak US futures
US futures fell as much as 2 percent later tonight, signaling the start of a gap for the Dow Jones, S&P 500 and Nasdaq. While markets like Japan, China and Australia fell 0.3 percent, Hong Kong, Taiwan and Korea lost up to 2 percent.
rupee 78.29. at a new record low of
The Indian rupee hit a new record low of 78.29 against the US dollar on Wednesday as continued outflows of foreign funds from financial markets, risk aversion in global equities and soaring crude oil prices put pressure on the domestic currency. Emerging market equities and currencies fell amid a sell-off ahead of Federal Reserve Chairman Jerome Powell’s testimony before the US Congress. According to forex analysts, increasing concerns about India’s inflation and current account deficit, as well as higher crude oil prices have also hampered the local entity.
Foreign outflows are being accelerated by the continued weakness of the rupee. Data shows that outflows from foreign stocks in June have so far exceeded Rs 40,000 crore versus Rs 2,07,195 yoy.
Refined technical outlook
“Although US markets ended overnight trading strong, weakness in most Asian indices could weigh on domestic benchmarks in early trade. On the other hand, Nifty technical charts are pointing to a “bullish morning star candlestick pattern”. Nifty’s make-or-break support for the day is seen at 15,453 and then good support is seen at the recent low of 15,181.
“We suspect Bank Nifty is also targeting a significant rally with major support at 32,155. However, reports could be put on hold amid fears the global economy will slow dramatically amid aggressive tightening by major central banks around the world to curb record inflation, which has shaken sentiment,” they said.
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