D-St Sell-Off Extends: Banking & Financial Stocks Drag Most, HDFC Twins Sink

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D-St Sell-Off Extends: Banking & Financial Stocks Drag Most, HDFC Twins Sink
Credit: © Reuters.

By Malvika Gurung

Investing.com -- The domestic market extended its ongoing slide for the sixth consecutive session on Wednesday, tracking a broad weakness in Asian equities and weak global cues as concerns intensified over the Fed’s aggressive monetary tightening and a global economic slowdown.

Equity benchmark indices made a gap-down opening on Wednesday and fell almost 1% lower in the day (so far). At the time of writing, Nifty50 was trading 0.3% lower and Sensex slipped 157.2 points.

While pharmaceutical, auto and IT stocks provided support to the market, the financial, banking and metal sectors exerted pressure. Shares of HDFC Bank (NS: HDBK ) and HDFC (NS: HDFC ) tanked up to 1.2%.

Sectors under the Nifty umbrella traded mixed while writing, with Nifty Pharma surging the most, while the Nifty Private Bank index was the worst performer. Nifty PSU Bank and Nifty Bank were sore in red too. Barring ICICI Bank (NS: ICBK ), all the stocks under the Nifty Bank index were trading lower.

A falling Indian rupee against the US dollar dragged the market lower too. The domestic currency plunged to a record low against the greenback on Wednesday at 81.94 as the US dollar index hit a fresh 20-year high and the benchmark US 10-year Treasury surpassed 4% and touched its highest since 2010.

Read Also: INR Sinks to New Low, Nears 82-Mark/$1; Expert’s Key Levels For INR

According to the senior portfolio strategist at Ingalls & Snyder, New York, Tim Ghriskey, as long as the Fed continues to raise interest rates and investors fail to decode the end of the rate-hike cycle, the market will continue being weak.

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