Metal stocks fall : Weak global cues, high crude prices dent equities

Insight Online News

Mumbai, Oct 6 : Weak global cues along with profit bookings and high crude oil prices dented India’s key equity indices — S&P BSE Sensex and NSE Nifty50 – on Wednesday.

Globally, equities traded sharply lower as risk sentiment soured amid growing worries that inflation may persist.

Notably, bond yields rose and European stocks retreated after energy prices surged and the IMF cut its economic growth expectations.

On the domestic front, Metal, Realty, Healthcare and Consumer durables led the pack on the downside.

Besides, S&P BSE MidCap shed 1.2 per cent and S&P BSE SmallCap fell 0.5 per cent.

Consequently, the 30-scrip sensitive index closed at 59,189.73 points down 555.15 points or 0.93 per cent.

Besides, the NSE Nifty50 traded at 17,646 points, down by 176.30 points or 0.99 per cent.

“Nifty snapped a two day winning streak driven lower by weak global cues,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

“Even if, the global markets show some recovery, Nifty could after a small recovery again run into profit taking. Investors may take a part of their profits and raise cash, while traders can keep strict stoplosses and reduce their positions till the sentiment improves.”

According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Indian equities opened positive but gave in to profit booking in second half following weak global cues. All sectoral indices ended in red.”

“Domestic markets are expected to consolidate in a broad range following multiple global concerns and elevated valuations. It is likely to witness high volatility till some decision is reached over US debt ceiling over next two weeks. Even RBI’s MPC and TCS results, both due on Friday would add to the volatility.”

In addition, Vinod Nair, Head of Research at Geojit Financial Services, said: “Weak global markets which resulted in profit booking in metals and IT stocks, led domestic indices to trade in red, trimming its early gains. Spike in crude prices is spooking Indian market while inflation is affecting US bond yields.”

“RBI commenced its three-day MPC meeting in which the central bank is expected to keep rates unchanged, however, it is likely to announce measures to gradually pump out liquidity from the economy.”

IANS / AGENCY

Leave a Reply

Your email address will not be published. Required fields are marked *