The Indian benchmark indices rose sharply on Friday as the Sensex gained over 300 points to close at 73,881 and the Nifty increased more than 77 points to settle at 23,140 at 3:30 PM.
Several negative developments converged to unsettle the domestic equity markets on Thursday, with rising US bond yields, elevated crude prices and concerns over IRDA’s proposals on insurance commissions weighing on investor sentiment.
The Nifty plunged 383 points during Thursday’s session, while the Sensex also suffered a sharp decline.
“Sometimes many negative news come together to spook the markets. This was what happened yesterday when rising US bond yields, spiking crude and concerns over IRDA’s proposals on insurance commissions spooked the Nifty by 383 points. Even though crude has cooled off a bit, Brent remains high at USD 106,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
US Bond Yields Remain A Headwind
Vijayakumar said the US 10-year Treasury yield hovering around 5.2 per cent continues to pose a significant challenge for equity markets globally.
“The US 10-year yield hovering around 5.2 per cent continues to be a strong headwind for equity markets globally and for India elevated crude would remain a big challenge if it remains high for too long,” he added.
Asian Markets Mixed
Asian markets traded mixed on Friday. The Nikkei 225 index quoted in positive territory, while the Shanghai SSE Composite index and Hong Kong’s Hang Seng index traded lower.
US markets ended mostly lower on Thursday.
FIIs Sell Over Rs 5,000 Crore
Foreign Institutional Investors (FIIs) remained net sellers in the Indian equity market. They offloaded equities worth Rs 5,027.36 crore on Thursday, according to exchange data.
Sensex, Nifty End Sharply Lower
On Thursday, the Sensex tanked 1,247.71 points, or 1.67 per cent, to settle at 73,580.54.
The Nifty dropped 383.70 points, or 1.64 per cent, to end at 23,063.10.
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