The Indian equities benchmark on Thursday slipped more than 1% for the second straight session, expressing concerns that the US bond yield increase could lead to foreign fund outflows in view of the Federal Reserve’s dovish policy stance.
Amid widespread selling pressure, the S&P BSE Sensex lost 585 points, or 1.17%, to close at 49,217. The NSE Nifty 50 index lost 163 points or 1.11% to close at 14,558. Both indices fell for the fifth consecutive season.
Analysts said increasing US bond yields could lead to outflow of funds.
Vinod Nair, head of research at Geojit Financial Services, said, “Equity improved after initial optimism as US bond yields reached their highest level since January.”
Mr. Nair said that the Indian markets saw more volatility than their global peers as domestic investors took extra caution on the increasing number of COVID-19 cases.
“The growing concerns of possible fresh economic sanctions have encouraged the Federal Reserve to comment on domestic markets,” the Press Trust of India quoted Reliance Securities chief Binod Modi as saying.
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