Markets are likely to remain under pressure amid a sharp surge seen in U.S. 10-year treasury yields to 16-year highs of 4.5 per cent, says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Service.
Nifty traded sideways amid subdued global cues and closed flat to negative at 19669 levels. Also mounting concerns over China's real estate sector, and FIIs offloading in domestic equities dampened the sentiments, he said.
However, momentum is seen in auto and defensive sectors like FMCG. Auto sector is expected to remain in focus going ahead as OEMs are likely to increase output by 25 per cent amid a build-up in orders ahead of the festive season. FMCG sector is looked at as a safe haven given the pressure seen in the broader markets, he said.
Investors would watch out for the US Consumer Confidence number for the month of September and New Home Sales data for the month of August that would be released later in the day, he added.
Vinod Nair, Head of Research at Geojit Financial Services said trading remained flat as headwinds from the global market and continued selling by FIIs kept domestic investors under vigil.
While bargain hunting was visible in small-cap stocks due to the recent correction and favourable valuation compared to large and mid-caps, IT indices slid due to the fear of one more rate hike by the FED and a consequent reduction in spending.
(With inputs from IANS)
