FIRST TRADE: Indicators open below; Sensex down 450 points, Nifty down 112 points to 24,036
The Sensex and Nifty started the new week on a muted note as major events with the US election and the outcome of the Fed meeting are now behind us. At the open, the Nifty was down 0.46 percent or 112 points at 24,036.1, while the Sensex was down 0.57 percent or 449.61 points at 79,036.71.
Meanwhile, the Bank Nifty fell nearly 250 points, while the broader markets faced higher selling pressure.
Sectorally, auto, pharma, realty and IT traded in the green, with the auto pack retaining its mojo from last week. In contrast, oil and gas and consumer durables picked up the fastest pace in today’s trade with a reduction of up to 0.7 percent in the indices.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services noted that the sustained rally in US markets that took the Dow and S&P 500 above 40000 and 6000 respectively is no longer a contender for Indian markets.
In India, by contrast, a worse-than-expected wage cut in FY25 is weighing on bearish stock prices in the near term. FIIs may continue to sell and move money to the US which has done very well in India so far this year. However, at some point the prices in India will attract and this will help reverse the trend in favor of the bulls for a while. Weakness in Chinese stocks due to disappointing stimulus package will be good for Indian stocks, he added.
Asian markets
Asian markets are trading mostly in the red, with the Hang Seng down 2 percent at last count. The pessimism intensified after China’s latest stimulus failed to revive the road. Also, the latest data indicates that deflation continues to play out in China.
The MSCI Asia ex Japan index was down more than 1 percent at 593.88.
Technology
Prashanth Tapse, Senior VP (Research), Mehta Equities said, “In fact, the Nifty’s potential downside risk is close to 23,811, and any retracement is likely to be a file cat bounce unless there is a strong close above 24,537. With Q2 results coming in slowly, stocks like SBI, M&M, and Swiggy IPO are in focus Traders are advised to sell Nifty at 24,200-24,250 and Bank Nifty at CMP, while M&M stands out as a recommended buy for a long time.
