Latest Stock Market News

Benchmark 10-year U.S. Treasury yield declined, after briefly rising above 5% on Monday and further threatening an economic slowdown on higher borrowing costs. [US/]

“There is a mini bubble in the broader market and one needs to be selective about that. Do not be too quick to jump into an index which has gone up 35% and stocks that have gone up 3X-5X. Okay, the stock has corrected 5%, 10%, let it stabilise, do some homework and then start nibbling.”

The rupee moved in a tight range of 83.15 to 83.09 against the dollar in morning deals before trading at 83.15. It had closed almost flat at 83.12 on Friday.

The global financial markets have been roiled by the surge in the US bond yields with the 10-year benchmark crossing the 5% psychological mark for the first time since 2007.

“Kunal Bothra discusses various emotions associated with investing in specific stocks. He mentions that Reliance Industries and HDFC Bank attract a sense of attachment, while Tata Motors represents pride. He refers to Suzlon as a stock that triggers greed, and Sun Pharma as a stock that instills fear. Bothra also mentions his envy of the returns in the defense midcaps. L&T represents pride and Tata Chemicals is associated with deceit.”

The weakness comes against broad fragile sentiment around the globe on risks of continued fighting between Israel and Hamas. A gauge of global equity markets fell to an almost seven-month low on the outlook, as the benchmark U.S. Treasury yield crossed just above 5%.

"We are seeing a mean reversion phenomenon in the markets where the mid- and small-cap indices both peaked in October and are now experiencing a correction at a rate faster than the Nifty" said Deepak Jasani, head of retail research at HDFC Securities. "Investors display a sentiment of risk aversion and are not willing to wait longer, and hence are pulling out of the market booking profits wherever available or cutting losses."

The mortgage lender kept aside Rs 1196 crore as expected credit loss provisions against Rs 2162 crore in the year ago period. This is in line with improvement in asset quality with gross non-performing assets ratio declined by 1.78% at the end of September from 3.39% a year back.

"SIP flows continue to be strong despite global headwinds as the domestic economy is showing resilience. We are also seeing more NFOs being launched, especially in multi-cap, small-cap, and thematic space to plug in any gap in the product offerings. An investor should consider various factors for selecting a fund such as fund manager experience, performance history, expense ratio, type of scheme, assets under management and investment objective."

Indian stocks plunged on Monday as US 10-year Treasury yields breached 5% for the first time since the Global Financial Crisis. This raised concerns that rising global risk-free rates will increase the risk premium on emerging market assets. Mid- and small-cap shares were hit the hardest, with over 80% of BSE-listed stocks ending in the red.