Muted IT Q2 show weighs on mkts

Mumbai: Equity benchmark indices Sensex and Nifty buckled under selling pressure for the second straight session on Thursday as a bearish trend in global markets amid escalating geo-political uncertainties unnerved investors. Besides, disappointing quarterly earnings numbers and revenue forecast from IT services company Wipro also weighed on investor sentiments, traders said. Metal, energy and power stocks witnessed selling pressure, while buying in auto and consumer durable counters capped the losses.

The 30-share BSE Sensex fell 247.78 points or 0.38 per cent to settle at 65,629.24 points. During the day, it plunged 533.52 points or 0.80 per cent to 65,343.50 points. The Nifty declined 46.40 points or 0.24 per cent to 19,624.70 points. Investors lost Rs44,596.92 crore as market capitalization (mcap) on BSE declined to Rs3,20,96,223.89 crore (Rs320.96 lakh cr).

“Amid increasing global political strain, US treasury yield, and underwhelming IT earnings, the domestic market continued to trade with a minor cut. However, some optimism was evident in the equity market given global efforts to stabilise the West Asia conflict, which deescalated the crude price trend. Auto sector stocks outperformed, driven by Q2 results outcome. Investors are closely monitoring the Q2 earnings season, US Fed chair speak and West Asia developments,” said Vinod Nair, head (research) at Geojit Financial Services.

“Markets remained vulnerable amidst simmering Middle-East geopolitical tensions. Pessimism still continues to run high amidst negative catalysts like deepening Israel-Palestine conflict, uninspiring Q2 from corporate India Inc. so far, the 10-year US Treasury yields spiking to 4.87 per cent, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powell’s speech later today,” added Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

“Global equities slid on Thursday as risk aversion prevailed due to mounting worries over Middle East conflict, while the bond sell-off intensified, taking Treasury yields to fresh 16-year highs ahead of a keenly awaited speech from Fed Chairman,” said Deepak Jasani, head (retail research), HDFC Securities.