False risks to markets!

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Prime Time Zone, Webdesk: Domestic equity markets once again registered huge losses. The indices fell worse on the last day of the 2020-21 financial year. Analysts attributed Wednesday’s losses to rising bond yields and a weaker rupee in the US. Analysts said the impact was felt on domestic markets as US markets traded lower on Tuesday, while Asian markets traded lower. Experts attributed the fall in markets to investors’ reluctance to take profits after Tuesday’s huge gains.

In addition, analysts said that the United Nations’ forecast that economic activity in India would be lower than in 2019 has hurt market sentiment. Similarly, analysts said the markets were not pleased with the rating agency Moody’s announcing that inflation was at an alarming level. The Sensex was down 627.43 points at 49,509 and the Nifty was down 154.40 points at 14,690.

In the Nifty, the finance sector index fell 2 per cent, while banking, IT and private banking sectors declined. The real estate, FMCG, PSU bank and pharma sectors traded better. In the Sensex, ITC, Bajaj Finserv, Hindustan Unilever and SBI gained, while HDFC Bank, HDFC, Powergrid, Tech Mahindra, ICICI Bank, Asian Paint, ONGC and Kotak Bank were the biggest losers. Rupee exchange rate against US dollar Is at 73.13.