Sensex today: After a flat close the previous day, the Sensex and Nifty opened in the red on Wednesday amid weak global signals. Key Indices Nifty50 fell more than 100 points to trade below 16,900 levels and the S&P BSE Sensex fell more than 500 points to trade at 56,579 levels.
Moderate investor risk appetite also kept broader markets in negative territory, as the Nifty MidCap 100 and Nifty SmallCap 100 indices fell within the 0.6 to 0.7 percent range.
Likewise, all sectors started trading in a bearish tone. Nifty Auto, Nifty Metal and Nifty Bank indices saw the biggest declines, as they fell more than 1 percent each.
While Dr. Reddy’s, Sun Pharma, Wipro, Infosys tried to reduce losses for the benchmark indices; HDFC Twins, Reliance Industries, ITC, IndusInd Bank weighed down indices.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Overall, equity markets are in bear territory. Nasdaq fell 33.2 percent from its peak and the S&P 500 fell 24.3 percent from its peak. The Euro Stoxx 50 stands 24.3% below its peak. These are clear bearish signals from developed world markets. India is a clear outlier with only 8.5 percent decline from its peak in Nifty. India could remain an outperformer, supported strong fundamentals, but India cannot remain immune to major global trends.”
“The texture of the market has changed from ‘buy on dips’ to ‘sell on rally’ and so investors should now be cautious in the market. The Bank Nifty has sharply corrected 8 percent from its recent all-time high and is now weak. IT is likely to remain resilient, supported by currency winds. Cars and capital goods can be accumulated slowly in declines. As valuations in India remain elevated relative to peers, investors should brace themselves for more corrections in this bearish scenario. A sharp turnaround in global market sentiment will only happen when data points to a decline in US inflation.”
The Indian rupee opened at a record low at 81.83 per dollar on Wednesday, from its previous closing rate of 81.57.
Asian stock markets fell on Wednesday as rising borrowing costs fueled fears of a global recession, sent investors into the arms of the safe-haven dollar and pushed the Chinese yuan to record lows.
Tokyo stocks opened lower on Wednesday after Wall Street ended mixed, with the S&P 500 hitting a new low for the year. The benchmark Nikkei 225 index fell 0.98 percent or 261.70 points to 26,310.17 in morning trading, while the broader Topix index fell 0.78 percent or 14.65 points to 1,858.36.
The S&P 500 fell to its lowest level in nearly two years Tuesday on concerns about the Federal Reserve’s super-aggressive policy tightening, trading below the June trough and leaving investors wondering how much further stocks would need to fall before stabilizing. .
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