Sensex slips over 950 points at start of trade, Nifty dips below 15,900 points

Stock market today, stock market updates: Frontline stock indexes on BSE and the National Stock Exchange (NSE) opened more than 1% lower on Thursday and further and slid more than 1.7% at the start of weak trade tracking on the global market.

As of 9:47 a.m., the S&P BSE Sensex was down 958.31 points (1.77%) at 53,130.08, while the Nifty 50 was trading at 15,875.85, down 291.25 points (1. 80%).

On the Sensex pack, HDFC Bank, Reliance Industries (RIL), ICICI Bank, Housing Development Finance Corporation (HDFC) and Infosys were the main contributors to the index’s fall in early trading on Thursday.

“Inflation continues to be a major headwind for markets. US consumer inflation in April at 8.3% reinforces market concerns about aggressive Fed rate hikes and the possibility of a US recession in 2023. With the dollar index at 104 and expected to strengthen further, FII should continue to sell until the Indian valuation becomes attractive.Even if buying DII is more than the selling FII now is not enough to elevate sentiment in the market as macro headwinds are strong,” VK Vijayakumar, chief investment strategist at Geojit Financial Services said in a note.

He further noted that “the market’s preference for value over growth is reflected in the strength of high-quality banking stocks which are still at buyable valuations today.”

Rupee

The rupee fell 30 paise to 77.55 against the US dollar at the start of trade on Thursday as a lackluster trend in domestic stock markets and a firm US currency weighed on investor sentiment. In addition, persistent outflows of foreign funds and high crude oil prices have impacted national unity, traders said.

On the interbank exchange, the rupee opened sharply lower at 77.52 against the US dollar, then lost further ground to quote 77.55, registering a drop of 30 paise since the last close. In the initial transactions, the national currency was moving in a range of 77.50 and 77.57.

Global market

Stocks fell in Asia on Thursday after the release of worse-than-expected inflation data that sparked strong selling in tech stocks on Wall Street.

Hong Kong’s benchmark fell 1.5% in early trading following the arrest of several prominent democracy advocates, including a retired Catholic cardinal.

Wednesday’s report from the US Department of Labor showed inflation slowed slightly in April, falling to 8.3% from 8.5% in March.

Markets are focused on inflation and its direction, as this forces central banks to reduce the support to economies that has been deployed during the pandemic. The US Federal Reserve, for example, has moved decisively towards higher interest rates after seeing high inflation last longer than expected.

By noon, Hong Kong’s Hang Seng was down 1.1% at 19,613.34. The Tokyo Nikkei 225 fell 0.8% to 26,905.91. The Shanghai Composite Index edged down 0.2% to 3,051.77. Australia’s S&P/ASX 200 fell 0.9% to 7,002.50. The South Korean Kospi fell 0.3% to 2,584.97.

– PTI rupees entry, global AP market entry

.

Leave a Comment

%d bloggers like this: