Sensex, Nifty fall as weak global cues continue to spook investors
At 9:30 am, the S&P BSE Sensex was down 218.97 points at 65,627.53, while the Nifty 50 traded 44.25 points lower at 19,526. Broader market indices also tumbled in the wake of increased volatility.
In Short
- Benchmark indices open lower due to global concerns
- Nifty Pharma only decent gainer among sectoral indices
- Caution prevails before US inflation data and RBI policy decision
Benchmark stock market indices opened lower on Wednesday as weak global cues continued to spook investors.
At 9:30 am, the S&P BSE Sensex was down 218.97 points at 65,627.53, while the Nifty 50 traded 44.25 points lower at 19,526. Broader market indices also tumbled in the wake of increased volatility.
Most of the major sectoral indices fell, including Nifty Bank, Nifty IT and Nifty Financial Services. Nifty Pharma was the only sectoral index that seemed to be performing decently well.
The top five gainers on the Nifty 50 were Dr Reddy's Laboratories, Adani Ports, Coal India, SBI Life and Tata Consumer Products. On the other hand, the top losers were Divi's Laboratories, Maruti, HCL Tech, HUL and Hero MotoCorp.
According to analysts, the domestic markets are likely to experience some corrections in the wake of global developments. For instance, China's consumer prices declined sharply in July, triggering fears of deflation.
In addition, investors remain cautious ahead of US inflation data and the Reserve Bank of India's crucial policy decision. While economists are mostly certain that the central bank will not go for a rate hike, they expect the monetary policy committee to maintain its hawkish stance and keep the door open for future rate hikes.
These factors are likely to impact the market in the near future, but given the strong fundamentals and positive Q1 earnings, the sentiments are likely to improve after a period of correction.
On the technical side, Om Mehra, research analyst at Choice Broking, said, "The Nifty is trapped in a range; in the medium term, breaking above 19,640 is needed for a bullish trend to 19,720 with 19,500 acting as immediate support."
"A break below this level can lead to goals of 19,450. It will be crucial to monitor Bank Nifty to see if it can maintain its support level within the 44,500- 44,400 zone although 45,450 will act as significant resistance," he added.
