Sensex, Nifty Fall for Second Day as Rising US Bond Yields Rattle Global Investors
News 18Benchmark BSE Sensex tumbled over 440 points and the NSE Nifty cracked below the psychological 15,000-level on Friday due to profit booking in financials and IT stocks in line with relentless sell-offs in global equities as US bond market turmoil continued to rattle investors. The 30-share BSE barometer declined by 440.76 points or 0.87 per cent to close at 50,405.32, continuing its falling trend for the second day due to concerns over bond yields. "Domestic equities corrected for second consecutive day as rise in 10-Year USA Treasury yields and commentary from Federal Reserve chairman on rising bond yields weighed on investors' sentiments. Barring FMCG, all key sectoral indices witnessed sharp pullback with metals and PSU bank indices witnessing steeper correction in the range of 3-4 per cent, said Binod Modi, Head – Strategy at Reliance Securities. Clearly, rising bond yield fear, which appeared to have softened last week, has come to the fore again with back-to-back sharp rise in USA treasury yields, Modi said, adding that a higher bond yield reduces future earnings or cash flow projections and therefore premium valuations of equities become doubtful.