Sensex today: Indian stocks fell in broad selling on Monday, trailing Asian peers as investors eschewed equities amid renewed concerns about economic growth in the face of a high-interest-rate environment.
The S&P BSE Sensex fell more than 1,000 points during the day, reaching as low as 57,038, swept by a broad sell-off. The Nifty50, meanwhile, gave up 17,000 marks over the course of the day, reaching as low as 16,978.
However, buying IT stocks like Infosys, HCL Tech, TCS, Wipro and Tech M at the end of the day lifted the frontline indices from the lows. Nearly the BSE Sensex was at 57,145, down 954 points, while the Nifty50 was at 17,016, down 311 points. The indices fell 1.6 percent and 1.8 percent respectively.
In the broader markets, the BSE MidCap index fell by 2.85 percent and the BSE Smallcap index by 3.33 percent. In total, fewer than 700 shares rose on the BSE, against nearly 3,000 shares which fell on the stock market.
Among the sectors, the Nifty IT index was the only winner as it rose 0.6 percent, with Coforge, Mphasis, Mindtree, LTI and LTTS being the additional winners, excluding the large-cap stocks.
On the other hand, the Nifty Metal and Realty index each fell 4 percent, the auto index 3.8 percent and the banking index more than 2 percent.
Neeraj Chadawar, Head of Quantitative Equity Research, Axis Securities, said: “The performance of the Indian market in recent months has shown resilience, outperforming the global market by a superior margin based on the robust economic outlook compared to other emerging markets. With an aggressive stance from the US Fed, we observe a weakness in the global market in anticipation of a continuation of rate hikes in the remaining two FOMC meetings of 2022. In that context, the forward performance was likely bound by a band due to a stronger dollar The Indian currency has performed well and has remained stable against other emerging market currencies, thanks to higher foreign exchange reserves, robust growth prospects and macroeconomic stability.However, the sharp upward movement of the dollar index has led to weakness in the domestic market .”
“Now the market is looking at the monetary policy of the RBI, which is scheduled for this week. We advise investors to avoid riskier bets this week as short-term volatility is likely to continue. Furthermore, the market is looking to the upcoming earnings season and festival demand, likely to boost market fundamentals We recommend investors use this volatility in stages over the next few days to build a position with a 12-18 month view in quality companies where earnings visibility is very high In this context, domestically oriented themes such as banking, FMCG, hospitals, domestic industry and consumer luxury are well positioned over export plus cyclical themes,” Chadawar said.
Rupee hits record low
The rupee weakened to a new low against the US dollar on Monday, while the dollar remained strong amid indications of a longer tightening cycle by the Federal Reserve, dealers said. The domestic currency closed today at 81.62 per US dollar, compared to Friday’s closing price of 80.99 US dollars. It hit an all-time low of 81.65 per US dollar during the day.
Asian stocks started the last week of the quarter on a declining trend Monday, while the dollar was on the rise as the prospect of high interest rates and weak growth shook markets.
Tokyo shares opened lower Monday after a long weekend of global sell-offs, with investors expected to remain “risk-free” for some time.
Wall Street’s major indices slumped and closed well on Friday, as troubled investors continued to reposition to reflect fears that the US Federal Reserve’s aggressive interest rate policy to curb inflation will push the US economy into recession.
Oil prices rose modestly in early trading Monday after falling to an eight-month low last week, weighed down by a surging US dollar and fears that sharp rate hikes would trigger a global recession and erode fuel demand. .
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