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Sensex sinks below 29000, Nifty tanks 170 pts; banks bleed


The News International Team

1:55 pm  FII view: Robust jobs growth in the US is the talking point in market across globe. However, wages still remain very subdued, it rose a miniscule 2 percent year-on-year, which means the case for a rate hike isn’t that strong as perceived, feels Mark Matthews of Bank Julius Baer & Co. In an interview to CNBC-TV18, he said the matter is more complex than it appears and ruled out interest rate hike any time soon. “Certainly not in June,” but added that the Fed won’t hike it more than 25 bps at one go. “So by end of this year if the Fed raises rates two more times, it would still be hovering around historic lows, Matthews analysed.

1:30 pm Market check: The Sensex is down 478.61 points or 1.6 percent at 28970.34 and the Nifty is down 170.40 points or 1.9 percent at 8767.35. About 908 shares have advanced, 1741 shares declined, and 199 shares are unchanged.

Sesa Sterlite, GAIL, ICICI Bank, Axis Bank and BHEL are top losers in the Sensex.

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The market is still under pressure as the Sensex is down 389.48 points or 1 percent at 29059.47. The Nifty is down 124.75 points or 1 percent at 8813.  About 987 shares have advanced, 1613 shares declined and 189 shares are unchanged.

HUL, Dr Reddy’s Labs, Bajaj Auto, Sun Pharma and Maruti are top gainers in the Sensex. Among the losers are Sesa Sterlite, GAIL, ICICI Bank, Axis Bank and NTPC.

Oil prices will reverse their recent gains as global crude inventories begin to increase again, with US crude likely to drop as far as USD 40 a barrel in the near-term, Goldman Sachs said.

Oil prices rose by almost a third between January and February on the back of Middle East supply disruptions, strong winter demand and high refinery margins. That followed a rout that had seen price falls of around 60 percent between June 2014 and January this year.

But Goldman said that “the activity pull is sequentially weakening” and that global crude inventories would therefore rise, pushing West Texas Intermediate (WTI) crude to $ 40 a barrel, levels last seen at the peak of the global financial crisis in late 2008, early 2009. It stood at around $ 49.40 on Monday.

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