Sensex down 700 points led by slump in Tech Mahindra

BSE Sensex is down 700 points in morning commerce on Thursday led by a slump in Tech Mahindra.

BSE Sensex was buying and selling at 70,331.85 points, down by 728.46 points or 1.03 per cent.

Tech Mahindra plunged greater than 5 per cent on weak quarterly outcomes. Axis Bank, Sun Pharma are down greater than 2 per cent.

V.Ok. Vijayakumar, Chief Investment Strategist, Geojit Financial Services stated because the tug of battle between the FIIs and DIIs continues, volatility will stay excessive in the near-term. This volatility could also be used by traders to churn their portfolios.

A big anomaly in the market is the excessive valuation in some pockets and the honest and even enticing valuation in another pockets. For occasion, some PSU shares are flying excessive on hopes based mostly on order flows. It will take a very long time for these order flows like in ship constructing, as an illustration, to translate into earnings. And there is no such thing as a assure that it’s going to occur. On the opposite hand pockets like banking are pretty valued and the efficiency and prospects are good. There is worth in bluechips like HDFC Bank, he stated.

The rising bond yields in the US is a matter of concern. This rally in international inventory markets was triggered by the Fed pivot which noticed the 10-year bond yield falling from 5 per cent to round 3.8 per cent. Now the 10-year is again at 4.18 per cent which signifies that the Fed fee minimize will come solely in H2 of 2024. A big take away from the Q3 outcomes is the bettering margins of the auto business, he added.

(With inputs from IANS)