Sensex drops more than 170 points, stalling Friday’s meteoric rally

0
3
Sensex drops more than 170 points, stalling Friday's meteoric rally
google news

<!–

–>

Stock market: Sensex and Nifty fall in volatile session and block Friday’s spectacular rally

India’s equity benchmarks fell on Monday after hovering for most of the session between losses and gains as investors took profits and repositioned ahead of October’s domestic inflation data and a deluge of earnings reports later today.

The BSE Sensex index fell 170.89 points, or 0.28%, to end at 61,624.15, and the broader NSE Nifty index fell 20.55 points, or 0.11%, to end at 61,624.15. close at 18,329.15.

That stalled a meteoric rally in national benchmarks on Friday, following a surge in global equities.

Some of the major Sensex Pack stragglers included Dr. Reddy’s, ITC, Hindustan Unilever, State Bank of India, ICICI Bank, Nestle, Titan, Mahindra & Mahindra, Larsen & Toubro and Reliance Industries.

The main winners were Kotak Mahindra Bank, Tata Steel, Power Grid, IndusInd Bank, Infosys and Maruti.

“Markets posted a sideways move during a lackluster trading session and finished lower as traders took profits in some counters after last week’s sharp rise. The lack of new positive triggers on the global front has prompted investors to reduce their holdings,” said Shrikant Chouhan, head of retail equity research at Kotak Securities.

While a weaker inflation reading based on domestic wholesale prices helped boost risk sentiment, record coronavirus cases in major Chinese cities weighed on risky assets and limited the dollar’s decline. refuge.

Still, global stocks continued last week’s rally more modestly on Monday, helped by China’s aid to the country’s property sector.

MSCI’s broadest index of Asia-Pacific stocks outside of Japan rose after rising 7.7% the previous week, while Europe’s benchmark STOXX rose a modest 0, 4%.

But S&P 500 futures were down, suggesting U.S. markets would open lower, pushed by a Fed official’s warning that a single reading of inflation would not prevent the central bank from to continue its aggressive tightening, which weighed on risky assets.

A slight drop in U.S. inflation on Thursday sent two-year Treasury yields tumbling 33 basis points, the biggest drop since 2008. The dollar was down about 4% from last week, which was the fourth largest weekly loss since the era of free circulation. floating exchange rates started more than five decades ago.

“The CPI downside surprise aligns with a wide range of indicators pointing to lower global inflation which should encourage a moderation in the pace of monetary policy tightening at the Fed and elsewhere,” said to Reuters Bruce Kasman, head of economic research at JPMorgan. .

“This positive message needs to be tempered by the recognition that inflation cuts will be too small for central banks to declare mission accomplished, and further tightening is likely on the way.”

Featured Video of the Day

India set to become world’s third largest economy by 2030: report

ndtv

google news
Previous articleMawson Infrastructure Group, Inc. Announces Financial Results for Third Quarter 2022
Next articleDaunting road trip arrives at troubling time for embattled Knicks coach