Opening Bell: Nifty below 17,000, Sensex drops more than 700 points; IT, Realty, FMCG stocks top laggards
Extending losses for the second day, Indian market opened in the red tracking its Asian peers and in line with the trends on SGX Nifty on Monday.
Extending losses for the second day, Indian market opened in the red tracking its Asian peers and in line with the trends on SGX Nifty on Monday. Benchmarks Nifty 50 and the Sensex opened nearly 1 % lower as weak global cues weighed on the Indian market. The Nifty50 slipped started near 17000 and the Sensex dropped nearly 400 points to open at 17,009.05 and 56,757.64 respectively. The market fell further as the Sensex tanked more than 700 points and the Nifty slipped below 17000-mark soon after opening.
Globally markets turned weak with the big cut in the mother market US last Friday, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "Markets are worried about the increasing hawkish messages from the Fed which indicate higher-than-expected rate hikes by the Fed this year. There are concerns that aggressive monetary tightening might even push the US economy into a recession in 2023. These fears are impacting risky assets," he said.
He was of the view India cannot be immune to a probable global market correction. But India is relatively resilient, he said. "Monetary tightening in India would be mild compared to that of the US. There are indications of good recovery in the economy. ICICI Bank's excellent results also reflect the improving asset quality and growing credit demand in the banking sector. Top quality banking stocks are at buyable valuations. Sharp market corrections caused by global factors can be used to buy quality names in a calibrated manner," he said.
In the broader market, Nifty midcap and small cap were too trading lower by more than 1% on Monday
See Zee Business Live TV Streaming Below:
Among sectors, all Nifty indices turned red with Nifty FMCG, IT and Realty aking the maximum beatings
In the pre-open, the Sensex tanked more than 400 points as ICICI Bank and HCL Tech were the only two gainers as 28 stocks declined on the 30-share index.
Nifty closed lower at 17,172 on Friday as selling pressure prevailed at higher levels, while VIX ended at ~18-level. Despite breaking above the 17,250-17,200-resistance zone, the Index was susceptible to selling pressure at 17,500-level, said Viraj Vyas, Technical and Derivatives analyst at Ashika Broking.
"A faster retracement of the fall is still crucial for the recovery rally to gain strength with support seen at 17,000-level. On the upside, however, fresh buying momentum will be visible once the Index starts sustaining above 17,500-level. On the weekly chart, the Index has formed a big ‘Doji’ bar, which signals continued indecision of the market participants," he added.
Earlier, Asian markets were trading negative on Monday as Japanese Nikkei 225 was down 1.9%, Hang Seng Index nearly 3% and Chinese Shanghai Composite was trading lower by more than 2.5% in the early trade.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PM Modi has invested in this post office scheme; know his total worth as per Lok Sabha elections 2024 affidavit
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
09:27 AM IST