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Stock Market Update: Market Opened in Red, Sensex at 58,142 and Nifty Over 17,000

The BSE Benchmark  Sensex on Monday opened in red  and was trading at 58,142.27, down 162.8 points , or 0.28 per cent. On the other hand, bluechip index Nifty50 was trading at 17,339, down 30 points, or 0.17 per cent. The Indian market opened in the negative territory, factoring in the negative global cues.

On NSE,  Coal India, Hindalco, HDFC, UPL, JSW Steel were the top performers. The scrip of Coal India rose by 1.48 per cent, followed by Hindalco’s scrip which rose by 1.42 per cent.  On the flip side, Reliance, ICICI Bank, HCL Tech, Eicher Motor, Infosys were among the laggards. Sectorally,  Nifty Media was the top gainer in the early trade. However, Nifty Bank, Nifty Auto, Nifty FMCG, Nifty IT, Nifty Financial Services were trading in the red.

“There are mixed signals for the markets at the start of the week. On the positive side, both FIIs and DIIs were bought last Thursday and the futures market also indicates FIIs going long. However, news from the US and Europe indicate a slowing down of the economy impacted by continuing restrictions on economic activity triggered by the new waves of the pandemic. Developed markets have turned slightly weak on these negative developments.The Mid-cap Index has staged a comeback this month outperforming the Nifty. But investors should refrain from jumping into the broader market since risk in the segment is on the higher side,” Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services said.

“US equities witnessed selling pressure last week as growing concerns from rising delta variant of Coronavirus dented sentiments with all three key indices recording weekly losses to the tune of 1.6%-2.2%. Further, sharp rise in Producer Price Index at 8.3% in August, which is at decadal high, also aggravated concerns. Notably, ECB policy meeting outcome was mostly on expected line, while ECB indicated to slow down the pace of asset purchase under its pandemic emergency purchase programme. For the current week, August CPI data and retail sales data would be crucial of USA markets. Consensus estimate for CPI is 5.3%. In case this data comes higher; then it may lead some amount of selling pressure in equities as this may influence Federal Reserve to announce concrete action about Quantitative Easing in upcoming FOMC meeting next week,” Binod Modi, head Strategy at Reliance Securities said.

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