In India, the Sensex today to end at 66,488, with the Nifty 50 shedding 0.9%, led by vulnerability in . Shares of Bajaj Finance plunged by more than 6% after the company reported dismal Q1 results, according to The Economic Times.
Rupee fell to a one-month low of Rs. 86.58 against the dollar, with rising US Treasury yields and ongoing foreign institutional investor (FII) outflows, as per Reuters. Fears regarding India’s current trade negotiations with the US and UK are also dampening sentiment, as shared by analysts at SBI Capital in a Mint report.
Market strategists are convinced that the recent rally has entered overbought territory, and Thursday’s pullback indicates caution ahead of global monetary policy indicators. “Markets are taking a break for breath. Everyone’s watching for the August 1 tariff date and the tone of the Fed next week,” Rohit Chopra, head of emerging markets at Lazard Asset Management, wrote in a note reported by Bloomberg.
