Yes Bank, Wipro, TCS, M&M major gainers today even as BSE Sensex, NSE Nifty open in red
On the global front today, Asian shares struggled to make any headway as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears.
The benchmark indices, the BSE Sensex and the NSE Nifty, open in the red today. The Sensex at Bombay Stock Exchange was down 216 points or 0.59 per cent lower at 36,256, while the Nifty at National Stock Exchange plunged 55 points or 0.52 per cent lower at 10,685. The Nifty breaches 10,700 for the first time since February 2019, and Sensex trading at 5-month low.
Major gainer today are Yes Bank, Wipro, TCS, M&M and Hero Motocorp, while ICICI Bank, Axis Bank, HDFC Bank, SBI, Indiabulls Housing, HDFC, Hindalco, UltraTech Cement, Cipla, RIL, and Tata Steel are the major losers.
Amid positive domestic institutional investors (DIIs), neutral global market and futures and options (F&O) and negative foreign institutional investors (FIIs) and sentiment cues the short-term trend of the domestic Indian markets will be negative today, according to Anil Singhvi, Managing Editor, Zee Business. He suggested that the trend would become neutral if Nifty and Bank Nifty close above 10,925 and 28,000.
On the global front today, Asian shares struggled to make any headway as weak US manufacturing activity and uncertainty over how much further the Federal Reserve would cut rates added to the general air of caution in markets buffeted by global growth fears, said a Reuters report. With political tumult in Hong Kong, Italy and Britain adding to the tense backdrop, investors were keenly waiting on a speech by Fed Chairman Jerome Powell later in the day at a gathering of central bankers in Jackson Hole, it added.
MSCI`s broadest index of Asia-Pacific shares outside Japan edged 0.1% lower, though it was up 0.6% for the week and on track to break a four-week losing streak. Japan`s benchmark Nikkei added 0.2% and Australian stocks eased 0.1%, while South Korean shares shed 0.3% after Seoul said it will scrap an intelligence sharing agreement with Japan.
Overnight, there were more signs of easing momentum as a survey showed US manufacturing activity contracted for the first time since September 2009, though better jobless claims data indicated a resilient labour market, Reuters said.
Earlier on Thursday, the equity indices fell sharply amid the lack of policy announcements to revive the economic growth from the government side. The Sensex tanked 587.44 points, or 1.59 per cent, to close at 36,472.93, while the Nifty plunged 177.35 points, or 1.62 per cent, to 10,741.35. The Bank Nifty was also down by 684.85 points, or 2.47 per cent, settling at 27,034.20.
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Chief Economic Advisor (CEA) K Subramanian at a summit in New Delhi said the Indian economy does not need a fiscal stimulus to tackle the ongoing economic slowdown, adding "We can`t expect the government to intervene every time some sectors go through sunset. Not all sectors are doing bad, some are doing well."
He added that policymakers need to be careful while deciding on any fiscal stimulus as a way to boost economic growth.