Sensex slips more than 500 points

BSE Sensex is buying and selling at 72,576.14 points, down by 521.14 points on Friday.

HPCL was down by 7 per cent, NTPC more than 3 per cent, M&M, Tata Motors more than 2 per cent and IOC, BPCL more than 6 per cent.

“The rebound out there on Thursday after the Wednesday crash is unlikely to maintain. Brent crude rising to $85 and the 10-year US bond yield spiking to 4.29 per cent are headwinds for the market,” stated V. Ok. Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

“Results of the stress exams carried out by the mid and small cap schemes of mutual funds anticipated immediately will probably be keenly watched by the market. If there are clear indicators of stress there may be regulatory motion by the SEBI, which is able to impression sentiments within the broader market,” he stated.

“Even with out stress exams, the broader market valuations are costly, and in some pockets, valuations are frothy. This is clearly unsustainable. Even when prospects for sure sectors are good, valuations have run forward of fundamentals. Low floating inventory in lots of segments has resulted in costs capturing up,” he stated.

“Investors ought to perceive that top high quality largecaps with good development prospects can be found at truthful valuations. Focussing on such shares could be safer than chasing smallcaps with stretched valuations,” he added.

Deepak Jasani, Head of Retail Research, HDFC Securities stated state-run Oil Marketing Companies (OMCs) introduced a discount in petrol and diesel costs by Rs 2 per litre throughout the nation.

Asian markets opened decrease following declines on Wall Street as new knowledge weakened the case for imminent Federal Reserve rate of interest cuts, he stated.

(With inputs from IANS)