PSU stocks correct for second day; Central Bank, IOC and Bank of Maharashtra shed around 5 per cent each
The domestic stock markets have inched lower for the fifth straight day amid choppiness as the ongoing correction shows no signs of abating. At 10:00 am, the BSE Sensex was trading at 50,665.25, lower by 225.55 points or 0.44 per cent and the NSE Nifty was at 14,938.15, down 44 points or 0.28 per cent. The broader markets are out-performing their larger peers, with the BSE Midcap index and BSE Smallcap index gaining 0.3 per cent and 0.1 per cent respectively.
Asian markets inched higher on Monday as expectations for faster economic growth and inflation globally batter bonds and boost commodities, though rising real yields also make equity valuations look more stretched in comparison.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1 per cent, after easing from a record top late last week as the jump in U.S. bond yields unsettled investors. Japan’s Nikkei recouped 1.0 per cent and South Korea 0.4 per cent, while E-Mini futures for the S&P 500 were a fraction firmer.
Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.
On the stock-specific front, ITC has weakened more than a per cent to emerge as the top loser among BSE stocks. Select auto stocks are also trading weak, with Bajaj Auto, Eicher Motors and M&M slipping over a per cent each.
PSU stocks continue to correct for the second consecutive session, with Central Bank of India, IOC, Bank of India and Bank of Maharashtra losing around 5 per cent each on the BSE.
On the other hand, select metal and IT stocks are witnessing buying interest. Hindalco has surged by 2.3 per cent to top the gainers list on the BSE and JSW Steel has added more than a per cent. In the information technology space, Tech Mahindra and Infosys have gained more than a per cent each on the BSE.
The BSE market breadth is weak. Out of 2,312 stocks traded on the BSE, there are 1,233 advancing stocks as against 953 declines.
