Sensex cracks below 49,000 led by declines in energy and bank stocks
Indian equity markets extended its previous day losses and witnessed a gap-down opening on negative global cues as rising bond yields constantly weighed the markets around the globe.
Sensex slipped below 49,000 to open at 48,972.36, down 244 points, and NSE opened lower by 71 points at 14,486.50.
Overall, 1050 shares saw decline at market opening with shares of ONGC, GAIL, Tata Motors and Larsen being the top drags for the index.
The BSE Sensex witnessed losses in 28 shares out of 30 in the main pack as investors went heavy on squaring off their positions.
Among all other sectors in the market, Banks continued to underperform on sustained selling in the space, Auto and Energy sector also saw major losses at market opening on Friday.
However, on the flipside, FMCG and IT stocks supported minor gains as HCL tech, ITC and Nestle managed to be among the top index gainers.
How will the markets perform ahead?
Experts in the market predicted that global news and happenings will be monitored closely by the market participants and every small negative will create an adverse effect on the equity market. The surge in covid cases and a stable bond yield percentage will continue to keep the markets under pressure for upcoming sessions. Technical analysts also highlighted that as the index breaks its resistance level, we might also see a correction similar to March 2020.
“The market may remain dull over in the near term as it continues to face some hurdles due to concerns over the bond yields, commodity prices and risk of increase in inflation. In addition, resurgence of covid cases in India continues to worry the market and may keep market under pressure till it subsides”, said a senior analyst from Motilal Oswal.
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