Nifty falls below 10,950 on slowdown concerns

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NEW DELHI: Equity benchmarks Sensex and Nifty ended lower for the second consecutive session on Wednesday dragged by metal and PSU bank counters as investors remained on the sidelines due to worries over economic growth.
Analysts said that investors remained cautious throughout the day as they awaited more information on stimulus measures that the Government is planning to introduce to arrest economic slowdown.
The sentiments were further dampened after a Nomura report said that India's economic growth is set to slow further in the April-June quarter of this year to 5.7 per cent amid contraction in consumption, weak investments and an under-performing service sector.
"High-frequency indicators continue to show familiar pain points – a deep contraction in consumption, weak investment, a slowing external sector and an under-performing services sector," Nomura said.
Analysts said markets may remain volatile in the near term in the absence of any fresh domestic triggers as investors await some action from the government.
Ajit Mishra, Vice President, Research, Religare Broking said, “Investors are pinning hopes on any stimulus measures from the government to lift the sentiments. However, we continue to remain cautious on the markets in the near term. We recommend that investors should utilise the market correction to accumulate fundamentally strong stocks trading at attractive valuations.”
Investors will also be closely watching Federal Reserve Chair Jerome Powell's comments in Jackson Hole, Wyoming, US, later this week which may provide further cues on whether the central bank will go for further rate cuts to energize the US economy.
Market at a glance

BSE Sensex closed 267.64 points, or 0.72 per cent, lower at 37,060.37. While NSE Nifty ended at 10,918.70, down 98.30 points or 0.89 per cent.
In the 30-pack Sensex, 8 stocks ended in the green and 22 in the red with Tata Motors as the worst performer and Hero MotoCorp the best. YES Bank, Tata Steel, ONGC and IndusInd Bank too joined Tata Motors on the losers list, slipping up to 10 per cent.
Infosys, HUL, Bajaj Auto and Tech Mahindra were among other Sensex stocks that advanced.
The BSE Midcap index declined 1.32 per cent and the BSE Smallcap index ended 1.43 per cent lower, underperforming benchmark Sensex.
BSE Metal index recorded losses of 2.92 per cent followed by Realty, Capital Goods and Oil & Gas index.
In terms of index contribution, Infosys, HUL, HDFC Bank and Hero MotoCorp were the top support while HDFC, ITC, L&T and ICICI Bank were the top drags on Sensex.
Global markets

On the global front, Asian shares closed on a mixed note as worries about global recession and trade wars wrestled with hopes for more monetary and fiscal stimulus to keep growth going. MSCI's broadest index of Asia-Pacific shares outside Japan dithered either side of flat after three straight days of gains.
Japan's Nikkei slipped 0.3 per cent, while Shanghai blue chips added a slim 0.06 per cent.
European stocks were up in morning trade on reports suggesting that merger talks between Fiat Chrysler and Renault have gained some traction in recent weeks.

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