Nifty 4% down from recent highs

It shows the resilience of the labour market in the US, raising the expectations of additional rate hikes. Nifty traded in negative territory for the second consecutive day on Wednesday to close at 19,436.10, down 93 points, or 0.47 per cent, while the Sensex closed with a loss of 286 points, or 0.44 per cent, at 65,226.04, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.The broader market was down by more than 1 per cent. Selling was seen across the sector, except for FMCG & IT, he said.The recent spike in US Treasury yields has been taking a toll on equity markets globally, turning investors cautious in the near term. This along with persistent FIIs selling has pulled the Nifty down by 4 per cent from a recent high of 20,222 levels, he said.“We expect weakness to persist in the market in the coming weeks till the headwinds recede. The Q2 earnings season will start next week and is expected to maintain the growth momentum of previous quarters," Khemka said.Even the pre-quarterly updates released so far indicate healthy traction. Market direction going ahead will depend upon the combination of global/local macros and earnings delivery along with management outlook.--IANSsan/arm

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