September 21, 2021 3:18:19 am
Domestic stock markets on Monday joined a global sell-off amid concerns that troubles at property giant Evergrande of China are likely to impact the global risk appetite and uncertainty over the forthcoming US Fed meeting. With metals, realty and banking leading the rout, the benchmark Sensex plunged 525 points, or 0.89 per cent, to 58,490.93 and the Nifty50 lost 188 points, or 1.07 per cent, to 17,396.90 on heavy selling. Markets started the week on a feeble note and lost nearly a percent as weak global cues hit sentiment.
The rupee fell by 26 paise to close at 73.74 against the US dollar, tracking a strong dollarin the overseas market and the sell-off in domestic equities.
Eye on US Fed
Global markets traded negatively as investors were cautious ahead of multiple central bank policy meetings scheduled this week. However, due to weak US job data and inflation increasing at a slower pace, the US Fed is not expected to hint on taper plans in the upcoming meeting.
Metals have been under pressure today on buzz over Chinese firm Evergrande facing financial trouble and speculation over default on debt payment, which led to a selloff. Tata Steel was the biggest loser on the Sensex chart and crashed 9.53 per cent. Shares of Jindal Steel & Power Limited tumbled 9.13 per cent, National Aluminium Company Limited plunged 8.92 per cent, Steel Authority of India Limited (8.20 per cent), NMDC (7.70 per cent), JSW Steel (6.99 per cent), Hindalco Industries Limited (6.07 per cent), and Vedanta (4.99 per cent).
Sectorally, BSE metal, basic materials, realty, power and utilities indices tanked up to 6.80 per cent, while FMCG closed higher. In the broader market, the BSE midcap and smallcap indices declined up to 1.84 per cent.
“The decline shows nervousness ahead of the US Fed meet and we may further slide in the Nifty towards the major support around the 17,150-17,250 zone. We recommend keeping a cautious approach and limiting naked leveraged positions…,” said Ajit Mishra, VP-research, Religare Broking.
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