INSUBCONTINENT EXCLUSIVE:
Hi there, youre listening to ET Markets Radio, I am your host Neha V Mahajan
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Lets get to it: Markets took a beating today! Sensex down 500 points, Nifty slips below 25,000
So, what set off the sell-off? Sensex closed at 81,757
2.6 lakh crore in market value erased
Broad sell-off throughout financials, automobiles, FMCG, and pharma.Top 5 factors behind the fall:1
FIIs Turn SellersAfter strong inflows in May and June, foreign investors pulled out 2,660 crore this month
This reversal in pattern reflects growing care amidst worldwide uncertainties, elevated appraisals, and a shift in threat sentiment.2
Axis Bank Misses EstimatesHigher provisions struck profits
Ripple effects were seen throughout HDFC, Kotak, and SBI, pulling the Sensex down by 391 points.3
Citi Downgrades IndiaCiti moves India to neutral, citing overvaluation
Market is at 23x forward profits, way above peers and historic average
While Citi is favorable on Indias macro outlook, it prefers sectors like banks, NBFCs, healthcare, and telecoms, and bewares on IT, metals,
Fed Confusion ContinuesConflicting signals from US Fed officials are meaning no rate cut in July
Even Septembers not guaranteed
The market state of mind is not that great.5
Oil Prices SurgeDrone strikes in Iraq push Brent to $70+
This is not good news for oil-importing India, so input cost concerns are back.Is this a healthy correction or a warning sign? Lets watch
the international cues next week.msid-122769974, imgsize-66612
