Sensex Today: After starting higher on Monday, lifted by healthy global cues, Indian equity markets ended flat amid selling in financial shares.
The S&P BSE Sensex ended at 73,896, up 17 points or 0.02 per cent, while the Nifty50 closed at 22,443, down 33 points or 0.15 per cent.
In the broader markets, the BSE MidCap and SmallCap indices declined 0.95 per cent and 1 per cent, respectively.
The volatility gauge, India VIX, meanwhile, soared nearly 14 per cent.
Among sectors, the Nifty PSU Bank index shed 3.66 per cent, the Nifty Consumer Durables 2.5 per cent, and the Nifty Media 2.16 per cent. On the upside, the Nifty Realty index gained nearly 2.7 per cent.
Expert Take: Dr. V K Vijayakumar, Geojit Financial
The US jobs data for April has come lower-than-expected indicating weakening labour market and slowing economy. US unemployment has risen to 3.9% in April. So the possibility of a rate cut by the Fed has again brightened. The decline in the dollar index to 105.8 and the cut in the 10-year US bond yield to 4.49% augur well for the market. Positive comment by Warren Buffett that India is an untapped market with great potential is hugely important. FIIs can take a cue from that rather than react every time to changes in US bond yields.
Global Cues
On Monday, Asian stocks saw an uptick as investors renewed their expectations that the Federal Reserve might implement rate cuts later this year. Meanwhile, the yen experienced a decline following a significant surge last week, which was attributed to suspected currency intervention by Tokyo.
Wall Street experienced a significant uptick, buoyed by a milder-than-anticipated employment report. This strengthened the argument for potential rate cuts from the Federal Reserve, while simultaneously showcasing the resilience of the US economy.
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