[ad_1]
Indian inventory markets fell sharply right this moment amid rising coronavirus circumstances and recent lockdowns in some elements in the nation. The broader NSE Nifty 50 index closed down 1.81% at 10,607 whereas the benchmark S&P BSE Sensex ended 660 factors decrease at 36,033.06, dragged by losses in banking and auto shares. The Nifty auto index closed down 2.38% at its lowest degree since January 2019, after an trade physique report mentioned auto gross sales for June practically halved from a yr in the past.
Global markets have been additionally weak right this moment on flaring US-China tensions and persisting coronavirus fears.
Private-sector lenders Indusind Bank and Axis Bank have been the highest proportion laggards on the home blue-chip Nifty index, shedding 5.5% and 5%, respectively.
Truck and bike maker Eicher Motors dropped 4% and India’s largest carmaker by market share Maruti Suzuki declined 3.6%.
“The India Volatility Index, often referred to as fear gauge, ended higher for the third straight day, ending 5.7% higher at 26.7. This was the biggest single-day gain for the Volatility Index in two months,” mentioned Deepak Jasani, Head Retail Research, HDFC Securities.
Some analysts anticipate markets to see extra weakness in near time period. “The Nifty broke the level of 10650 on a closing basis. This could result in some downward movement. We could expect 10480-10500 as the next level of support and thereafter 10,350. On the upside, in order to resume its uptrend, the markets would need to go past 10750 on a closing basis,” Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.
Here is what analysts mentioned on right this moment’s market efficiency:
Deepak Jasani, Head Retail Research, HDFC Securities
“Volumes on the NSE have been on the decrease aspect with Banks, Metals and Auto shares underperforming whereas Pharma shares did effectively. Shares fell in Asia on Tuesday as skepticism set in concerning the current upward momentum in world markets given rising confirmed coronavirus circumstances and tensions between the U.S. and China.
“Technically, Nifty has shown weakness after a long time. On downmoves, it could take support at 10484.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“Nifty finally ended the consolidation phase with a breakdown, citing subdued global markets, rising COVID-19 cases and higher than expected inflation numbers. We’re not surprised by the fall as markets were signaling exhaustion at the higher levels. Indications are in the favour of a further decline and Nifty could test 10,500 levels. Though the global markets are still buoyant, rising cases in India have raised fears of the imposition of lockdown in certain parts, which could dent the pace of recovery. We advise continuing with the stock-specific trading approach and accumulating defensive on dips.”
Vinod Nair, Head of Research at Geojit Financial Services.
“The markets exhibited high correlation with the global markets and with the virus infections hitting day highs in India, the uncertainty caught up with the markets. Global markets were weak following rising infections in US and US-China tensions being back in the news. Indian markets were also worried about the increasing number of localized lockdowns which would in turn again slowdown the predicted recovery for businesses. Volatility is expected to remain and investors are advised to be cautious and be stock specific in their trades.”
[ad_2]
Source link