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Wall Street continued to slide following FED Chair's remarks a day prior that rates may climb higher than previously anticipated. Stocks also took cues from rising dollar and yields. At close, Dow lost 0.46%, S&P fell 1.06% and tech heavy Nasdsq dropped almost 1.73%.
USD index gained some ground mainly due to weakness in British pound post BOE's decision to hike rates by 75bps. US 10 year also moved higher near 4.15%. On the flip side CBOE Vix continued to remain flat with a downward bias despite of a two day sell-off on Wall Street. The benchmark traded near 25.
Crude futures also gave back some ground on USD strength and lower demand, WTI traded near 88, Brent below 95.
Indian stocks closed lower taking cues from Wall Street and witnessing some profit taking on weekly options expiry day. IT stocks along with Power and Auto names lost some ground on global equity sentiments. Banking and Metal names helped indices recoup some of the losses during the day but at close Nifty saw a cut of 30 points and Sensex dropped 70 points.
Stocks may continue to see volatility on overseas equity, bonds and currency cues. For Indian markets however, improving macros and return of global investor interest remains the key decider in near term in offsetting weakness. Participants may continue to watch for rotational bias helping indices to maintain its head above water and offer tradable opportunities. US mid term elections' outcome (though not a significant market mover) and ongoing results season may remain key factors to watch for near term.
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By: via Allies Fin Serve Stock Market
