At 9.17 am, BSE Sensex was trading 229 points or 0.39% lower at 58,877. Nifty50 was trading at 17,439, down 73 points or 0.42%.
“The recent 3% rally has taken the Nifty to just 6% below its 52-week high. This rally in a difficult global equity environment has surprised many, including the FIIs, who have slowed down their selling,” V K Vijayakumar, Chief Investment Strategist at
said.
“Sustained flows into mutual funds, particularly via the SIP route, is a major factor imparting strength to the market even in the context of negative global economic news. So long as DIIs are flush with funds, markets are unlikely to correct sharply. Fundamental support to the market is coming from the good Q2 numbers particularly from financials,” Vijayakumar added.
The rising US bond yields and rising dollar are hitting all other currencies hard. This will continue to be a potential headwind for equity markets till US inflation starts showing a moderating trend, Vijayakumar further said.
Among Sensex stocks,
, M&M, , and were the top losers, falling about 1-3%. , , HDFC, , L&T and also opened lower.