Sensex cracks more than 600 points due to multiple headwinds
2 min readBSE Sensex cracked in morning commerce and is down 625 points at 66,946 points. HDFC Bank is down more than 3 per cent.
There are too many challenges for the market within the near-term. Brent crude at $94, the greenback index above 105, the two-year US bond yield at 5.09 per cent and the INR at report lows towards the greenback are robust headwinds, says V.Okay. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
To add to these headwinds, now there may be the disappointing information of the possible compression of NIMs of HDFC Bank, which could quickly influence sentiments in Bank Nifty, he mentioned.
The straining of relations between India and Canada is unlikely to have any lasting influence in the marketplace.
The hectic exercise within the mid- and small-caps has pushed valuations in these segments to excessive ranges. The sharp rise in lots of of those shares has been pushed by hope. It stays to be seen whether or not this hope will translate into actuality. Execution challenges could come up.
Investors could undertake a cautious technique of staying with prime quality large-caps, he added.
In the broader market, the valuations of fairly good PSU banks like BoB, Canara Bank and Indian Bank are even now enticing, he mentioned.
(With inputs from IANS)
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