Asian markets were down on Thursday, October 26, 2023, with the Nifty index falling by 0.4%. The decline was led by weakness in technology and financial stocks.
Factors contributing to the decline
There were a few factors that contributed to the decline in Asian markets on Thursday:
- Rising Treasury yields: Treasury yields have been rising in recent weeks as investors anticipate continued aggressive interest rate hikes from the Federal Reserve in an effort to combat inflation. Higher Treasury yields make stocks less attractive to investors, as they offer a risk-free return.
- Weakness in tech stocks: Technology stocks have been under pressure in recent months due to concerns about a potential slowdown in the sector. This weakness continued on Thursday, with the Nasdaq Composite index falling by 1.4%.
- Weakness in financial stocks: Financial stocks were also weak on Thursday, as investors worried about the impact of rising interest rates on the banking sector.
Impact on the Nifty
The Nifty index was down by 0.4% on Thursday, as weakness in technology and financial stocks weighed on the index. The Nifty IT index fell by 1.2%, while the Nifty Bank index fell by 0.9%.
Outlook for the Nifty
The outlook for the Nifty in the short term is bearish. The index is likely to remain under pressure due to rising Treasury yields and weakness in technology and financial stocks. However, in the long term, the Nifty is likely to trend higher, as the Indian economy is expected to continue to grow.
What should investors do?
Investors should be cautious in the short term and avoid investing in technology and financial stocks. However, investors can consider investing in defensive stocks, such as consumer staples and healthcare stocks. Investors can also consider investing in mid-cap and small-cap stocks, which are likely to outperform large-cap stocks in the long term.sharemore_vertadd_photo_alternatemic
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