Today, the Sensex was traded 0.5 percent lower and the Nifty is below 7850, as investors scrambled to factor in a near-term US interest rate hike.
Adding to it, even the rupee traded at over two-month low, below 67 per dollar.
In June, the Federal Reserve officials say that, the interest rates can be raised, if the economic data points to stronger 2nd quarter growth, as well as firming inflation and employment.
The analysts, on the other side, opined that, the rate hike in US, would make it less attractive for the foreign investors, to put money in the emerging markets like India.
Traders are tracking the counting of votes in Assam and are expecting BJP to form the government in Assam and also raise its vote share in the other states- West Bengal, Tamilnadu and Kerala.
“Investors are looking at how the position of the NDA government changes in Rajya Sabha post assembly elections, where key legislations like GST are pending,” said Lancelot D'Cunha of Crest Wealth Management.
Expecting DMK’s victory in Tamilnadu, Sun TV shares earlier, had witnessed high. But, after the trends showered positive rain on AIADMK in Tamilnadu, Sun TV got down to 10 percent. (It is to be noted that, the grandnephew of DMK President M Karunanidhi, Kalanithi Maran owns Chennai based Sun TV).
Corporate earnings, on the other side, will be focused as usual. Punjab National Bank, traded 2 per cent lower today, after reporting a record quarterly loss yesterday.
Drugmaker Lupin will report Q4 numbers on Thursday, along with the budget carrier SpiceJet, whose fortunes have changed dramatically over the last year. The Sensex, as of 10am today, traded 114 points lower at 25,591 and the Nifty was down 33 points at 7,837.
By Phani Ch
