FX.co ★ Sensex Hovers at Near 2-Week Low

India's stock market experienced a decline on Thursday morning, with shares dropping by 689 points, or 0.9%, bringing the index down to 80,901. This downturn marks a reversal from the previous session's gains, mirroring a significant fall on Wall Street overnight. The drop in US Treasury yields, due to fiscal risk concerns, was a contributing factor. The BSE Sensex fell to its lowest point in nearly two weeks, with all sectors impacted, particularly the tech sector, which decreased by over 1%. Additionally, small-cap and mid-cap stocks diminished by more than 0.3%. Despite this, recent PMI data provided some stabilization. The data indicated India's private sector experienced its most substantial growth in 13 months during May. This was driven by the services economy's most robust expansion in 14 months and an 11-month high in manufacturing activity, according to initial figures from a private survey. The Nifty 50 also decreased by 0.9% to 24,602. The most significant losses were recorded by Power Grid (-2.3%), Bajaj Finserv (-1.9%), Mahindra & Mahindra (-1.8%), and ITC (-1.6%). Bajaj Auto also saw a 1.9% decline as it moved to gain majority control of Austria’s KTM.