The Indian market fell for the second straight session today hit by negative global cues ahead of the Federal Reserve meeting. Sensex slipped 872 pts to 58,773 and Nifty closed 267 pts lower at 17,490. Tata Steel, Asian Paints and Wipro were the top Sensex losers, falling up to 4.5 per cent. ITC and Nestle India were the only Sensex gainers, rising up to 0.64 per cent.
Banking, consumer durables, IT, and auto shares were the top sectoral losers with their BSE indices falling 838 points, 645 points, 503 points and 571 pts, respectively.
Rupak De, Senior Technical Analyst at LKP Securities said, “Nifty slipped back below the falling trend line, indicating a failed breakout. On the lower end, the price has corrected towards the support zone of 17,500-17,400. Over the near term, a fall below 17,400 may trigger a further correction in the market. On the lower end, support is visible at 17,200/17,000. On the other hand, the Nifty may recover towards 17700 if it doesn’t fall below 17,400.”
All 19 sectoral indices on the BSE ended in the red.
Share Market update: Sensex closes 872 pts lower; Asian Paints, Tata Steel top losers
Market breadth was negative with 1,254 stocks ending higher against 2,286 stocks falling on BSE. 166 shares were unchanged.
Vinod Nair, Head of Research at Geojit Financial Services said, “Consolidation was triggered in the market in anticipation of tighter monetary policy by the FED and worries over a slowdown in global economic activity. The current risk reward is not favouring investors as the Nifty50 is now trading at a premium valuation of 21.5x P/E (1yr fwd basis), above the long-term average. Rising dollar index and higher US 10-year bond yield act as the near-term headwinds for the market.”
Market cap of BSE-listed firms fell to Rs 274.02 lakh crore today against Rs 277.77 lakh crore in the previous session.
Foreign institutional investors turned buyers on Friday as they sold shares worth Rs 1,110.9 crore, as per NSE data.
The market snapped its eight-session winning streak on Friday amid profit-booking and weak global cues. Sensex fell 652 points to 59,646 and Nifty lost 198 points to 17,758.
Consumer durables, banking and auto shares were the top sectoral losers with their BSE indices falling 499 points, 729 points and 431 points, respectively.
Investors were focusing on Federal Reserve conference for signals about more possible US rate hikes to cool surging inflation. In early trading, the FTSE 100 in London lost 0.7 per cent to 7,494.91 and Frankfurt’s DAX fell 1.1 per cent to 13,544.52. The CAC 40 in Paris sank 1.6 per cent to 6,389.86. The Nikkei 225 in Tokyo sank 0.5 per cent to 28,794.50. The Hang Seng in Hong Kong shed 0.6 per cent to 19,656.98.
The Kospi in South Korea gave up 1.2 per cent to 2,462.50 and Sydney’s S&P ASX-200 fell 1 per cent to 7,046.90.