The BSE Sensex was down 1,009.13 points, or 1.18%, trading at 84,562.72, while the Nifty50 dropped 284.95 points, or 1.09%, to 25,894 at around 11.50 am.
The share market also turned hesitant on Monday due to the conflict in the Middle East. Continued Israeli attacks in Lebanon have increased geopolitical uncertainty.
Meanwhile, the week is packed with major U.S. economic data including a payrolls report that could decide whether the Federal Reserve delivers another outsized rate cut in November.
U.S. data on Friday also showed that consumer spending increased moderately in August, while inflation pressures continued to abate, further lifting expectations of an outsized interest rate cut at the Federal Reserve’s November meeting.
Investors now await comments from Federal Reserve Chair Jerome Powell and Fed Governor Michelle Bowman later in the day.From the Sensex pack, M&M, Tech Mahindra, ICICI Bank, Tata Motors, Axis Bank, and Reliance Industries opened with cuts, while JSW Steel, Tata Steel, NTPC, Titan, Asian Paints, Titan, and Asian Paints opened with cuts.On the sectoral front, Nifty Metal rose 1.2%, continuing its winning streak following China’s announcement of several measures to boost its slowing economy. NMDC, Hindalco, and SAIL were the top gainers from the index.
However, Nifty Bank, Auto, Financial Services, IT, Media, Realty, Healthcare, and Oil & Gas opened in the red.
Among individual stocks, PC Jeweller opened with a 5% upper circuit after the company announced that it will consider a stock split in the board meeting today.
Biocon shares fell 2% in early trade after the U.S. FDA issued four observations to the company’s facility, which was inspected.
Experts View
“Market is likely to move into a consolidation phase in the near-term. One significant factor that is influencing foreign portfolios is the outperformance of the Chinese stocks which is reflected in the massive surge in the Hang Seng index by around 18 % in September. This surge has been triggered by hopes of revival in the Chinese economy in response to the monetary and fiscal stimulus announced by the Chinese authorities,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“This means FIIs may continue to sell in India and move some more money to better performing markets. FII selling is unlikely to impact the Indian market significantly since the massive domestic money can easily absorb whatever the FIIs are selling. Investors can use dips to buy quality largecaps which are fairly valued,” Vijayakumar added.
Hardik Matalia, Derivative Analyst at Choice Broking, said, “After a negative opening, Nifty can find support at 26,050 followed by 26,000 and 25,900. On the higher side, 26,250 can be an immediate resistance, followed by 26,300 and 26,350.”
Asian Markets
Asia share markets turned hesitant on Monday as strife in the Middle East offset more stimulus measures in China, while the Nikkei dived on concerns Japan’s new prime minister favoured normalising interest rates.
The rush of stimulus helped outweigh a poor manufacturing survey and lift the blue-chip CSI300 another 3.0%, having already jumped 16% last week. The Shanghai Composite climbed 4.4%, on top of last week’s 13% rally.
The Nikkei led the early action with a dive of 4.1% as investors anxiously waited for more direction from new Prime Minister Shigeru Ishiba, who has been critical of the Bank of Japan’s easy policies in the past.
FII/DII Tracker
The foreign institutional investors (FIIs) turned net sellers as they sold equities worth Rs 1,209 crore on September 27, while domestic institutional investors extended their buying as they bought equities worth Rs 6,886 crore on the same day.
Oil Prices Rise
Oil prices extended gains on Monday, buoyed by escalating concerns over potential supply pressures from Middle East producers following Israel’s increased attacks on Iranian-backed forces in the region.
Brent crude futures for November delivery increased 51 cents, or 0.71%, to $72.49 a barrel. That contract expires on Monday, and the more-active contract for December delivery gained 50 cents, or 0.7%, to $72.04. U.S. West Texas Intermediate crude futures added 43 cents, or 0.63%, to $68.61 a barrel.
Currency Watch
The Indian rupee fell 4 paise to 83.73 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.07% to 100.44 level.
(With inputs from agencies)
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