Mumbai: Domestic equity continued with its profit booking for the sixth consecutive day with Nifty slipping below the 19,000-mark and closing near day’s low at 18,857 levels (-1.4 per cent), said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
While Nifty tanked 257 points to a four-month low, Sensex plunged 900 points to settle at 63,148 levels, he said.
All the sectors were down 1-2 per cent.
Tensions in Middle East, coupled with sticky US Treasury yields at around 5 per cent, triggered risk-off sentiment. Further, mixed Q2 results, continued FIIs selling, rising oil price and near-record high $-INR to above 83, have also dented investor sentiments.
Given the global uncertainties, there could be higher volatility in the near term, giving long-term investors an opportunity to accumulate quality stocks at lower levels, he said.
Vinod Nair, Head of Research at Geojit Financial Services, said that till date, the actual domestic Q2 results have been below par in comparison to the excited earnings forecast earlier. Similar disappointments are visible in developed economies as well.
A downgrade in earnings and valuation is arising due to the risk of further slowdown of the economy due to geopolitical uncertainties and elevated interest rates. Also, selling pressure intensified due to expiry-led volatility, influencing investors to stay cautious, he said.
IANS