Taking Stock: Rising US bond yields, IT stocks send market tumbling for fifth day

Today's Market
Representative image

Representative image

The market started the day on a strong note on March 18 amid positive global cues after Federal Reserve signalled it was in no hurry to raise interest rates but gave up all gains in the second half and lost over a percent after US 10-year treasury yields hit their highest levels in 13-months.

At close, the Sensex was down 562.34 points, or 1.12 percent, at 49,801.62, while the Nifty slipped 189.20 points or 1.27 percent to 14,721.30 levels.

“With US 10-year yield hitting their highest level in over a year, bears held the upper hand on Thursday even as the Fed kept rates unchanged. Selling in financials kept markets in the red with broader markets seeing profit booking in IT & pharma stocks ahead of the FTSE rebalancing tomorrow,” said S Ranganathan, Head of Research at LKP Securities.

Among sectors, IT index shed 3 percent, pharma index fell over 2 percent and PSU Bank index declined 2 percent. BSE Midcap and Smallcap indices shed over 1 percent each.

HCL Technologies, Infosys, Dr Reddy’s Laboratories, Divis Labs and Hero MotoCorp were among the major losers, while gainers included ITC, Bajaj Auto, Hindalco, Grasim and M&M.

Stocks & sectors

Sectorally, the S&P IT index slipped 3 percent, while healthcare, power, realty, bank and capital Goods indices shed over a percent each.

Among individual stocks, a volume spike of more than 100 percent was seen in BHEL, Siemens and Bajaj Auto.

Long buildup was seen in the BHEL, ONGC and Shriram Transport, while a short buildup was seen in HCL Technologies, Ashok Leyland and Ramco Cement.

More than 100 stocks, including Adani Power, Dixon Technologies and Blue Dart Express, hit a fresh 52-week high on the BSE.

Technical View

The Nifty formed a strong bearish candle on daily scale and weakness continued for the fifth consecutive session, with the formation of lower- highs.

“Till the Nifty remains below 14,700 zone, weakness could be seen towards 14450 and 14300 zones while on the upside hurdles shift lower to 14800 and 14900 zones,” said Chandan Taparia of Motilal Oswal Financial Services (MOFSL).

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