In the US, the return on bonds increased and the cases of Kovid-19 in India were rapidly shaking the stock market today. Fear of lockdown once again to deal with the coronavirus epidemic, the market fell flat for the fifth consecutive day. The Sensex fell 1,145 points (2.3 percent) to close at 49,744. The Sensex closed down for the first time since 2 February.
Today’s decline was the largest in the past two months. With this, the Sensex has slipped 2,410 points (4.6 percent) in the last five sessions. The Nifty of the National Stock Exchange (NSE) also slipped 306 to close at 14,676 today. The India Vix index, which gave an indication of market fluctuations, also closed at 25.47, up 14.5 percent.
In the US, returns on Standard Government Bonds (Treasury) rose to 1.37 percent, the highest level in the past year. This shook the spirits of the investors. Fear of selling in the bond market and rapid rise in commodity prices and tightening of liberal monetary policy. There have also been occasions when the US market turmoil has led to heavy selling in developed countries.
On selling in the market, Dalton Capital India Director UR Bhatt said, “Increasing bond yields in the US would make some investors prefer to invest in the US bond market rather than taking risks in emerging markets. Likewise, the stock market has gone up and now investors will prefer to make profits instead of waiting longer.
Covid-19 cases have increased in India, including Mumbai, in other parts of the country, prompting investors to fear lockdown once again. On Monday, Maharashtra announced the imposition of new restrictions, including a ban on the large gathering of people across the state. The state has witnessed a spurt in cases of Kovid-19 during the last one week.
Although most of the world’s stock markets declined today, the most slippery was in the Indian market. Experts say that rising crude oil prices are also dampening the enthusiasm of investors. Brent Crewd jumped 1 percent to $ 62.74 a barrel. In India too, petrol prices have started reaching Rs 100 per liter, due to which the prices of essential commodities are going up. Analysts said the post-Budget hopeful is now eroding as the government will have to work together to keep the fiscal deficit low and curb skyrocketing oil prices, which will not be easy.