Sensex Opens Lower As US Bond Yields Hit Emerging Markets

Business

oi-Sunil Fernandes

Benchmark indices opened the day lower, as bond yields in the US rose, hitting stocks in emerging markets.

By Sunil Fernandes

Published: Friday, November 11, 2016, 9:32 [IST]

Benchmark indices opened the day lower, as Asian markets were seen trading lower, as the Donald Trump rally fizzled out.

There were fresh worries that Trump's policies would be inflationary, which may push interest rates higher. This fear raised bond yields across the US and pushed emerging markets like Brazil and India lower.

In Asia markets like the Hong Kong's Hang Sang and the Korean Kospi were both lower, though the Shanghai Composite saw some gains in trade.

The Sensex was trading with losses of 289 points, while the Nifty dropped 87 points in trade. Sun Pharma saw the biggest crack in trade and was down almost 3.5 per cent, while other big losers were Bosch and Infratel.

IT stocks continued to grind lower with Infosys and TCS among the losers, though the losses were not very large. Banking stocks also saw cuts of 1-2 per cent, as the decline spread to all sectors.

Bank of Baroda was the only stock from the Nifty that managed to gain in trade. The Bank is expected to announce its results later today.

Meanwhile, the rupee was weak and went past the 67 mark and was seen trading at 67.11 to the US dollar.

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