Market Overview - The markets experienced a significant selloff, with the Sensex dropping 1,546.84 points to close at 80,722.94 and the Nifty falling 495.20 points to end at 24,825.45 due to the proposed increase in Securities Transaction Tax (STT) on futures and options [1][3] - The Sensex and Nifty recorded their sharpest percentage declines since April 7, 2025, closing at a four-month low, with the Sensex down 1.88% and the Nifty down 1.96% [2] Sector Performance - The proposed STT increase from 0.02% to 0.05% on futures is expected to raise transaction costs across the derivatives market, impacting both individual and institutional investors [3] - Capital market, defence, and PSU bank indices saw declines of over 5%, with Bharat Electronics Limited (BEL) falling 6.02%, Hindalco down 5.78%, and ONGC dropping 5.50% [4] - The Nifty Midcap 100 and Nifty Smallcap 100 indices fell by 2.24% and 2.73%, respectively [2] Stock Movements - Technology and healthcare stocks provided limited support, with Wipro gaining 2.12%, Max Healthcare up 1.82%, and TCS increasing by 1.74% [5] - The market breadth was negative, with 2,375 stocks declining compared to 1,759 advancing, and 253 stocks hitting 52-week lows [6] Government Borrowing and Market Sentiment - The government announced gross borrowings of ₹17.20 trillion, exceeding market expectations, which may negatively impact bond market sentiment [7] - Heavy selling was observed in metals, with copper futures down over 5% and gold and silver futures crashing more than 5% and 9%, respectively [7] Technical Analysis - The market formed a long bearish candle on daily charts and is trading below the 200-day SMA, indicating a negative outlook [8] - Analysts expect continued volatility, with immediate support for the Nifty at 24,700–24,650, and a sustained move below 24,650 could lead to further declines [8]

Core Viewpoint - The yield on German 10-year government bonds increased by 1 basis point to 2.70% following the release of data from the United States [1] Group 1 - The yield on German 10-year government bonds rose by 1 basis point [1] - The current yield stands at 2.70% [1]

Group 1 - The Indonesian Finance Minister projects the 10-year government bond yield to be between 6.6% and 7.2% by 2026 [1] - The GDP growth rate for Indonesia is expected to be between 5.2% and 5.8% in 2026 [1] - The projected crude oil price for Indonesia in 2026 is estimated to be between $60 and $80 per barrel [1]

Core Viewpoint - The Indonesian Finance Minister projects that the yield on 10-year government bonds will range between 6.6% and 7.2% by 2026 [1] Group 1 - The expected yield range for 10-year government bonds indicates a stable outlook for Indonesia's debt market [1] - This projection reflects the government's confidence in managing fiscal policies and economic growth [1] - The anticipated yield range may influence investor sentiment and capital flows into Indonesia [1]