Updated: July 9, 2021 12:07:57 am
Domestic stock markets on Thursday came under selling pressure and lost nearly a per cent as weak global cues hit the sentiment. The benchmark Sensex fell by 486 points to 52,568.94 and the NSE Nifty index plummeted by 152 points to 15,727.90 in the sell-off.
Analysts said markets traded under pressure and lost nearly a per cent, pressurised by weak global cues. After the flat start, the benchmark gradually drifted lower and settled closer to the day’s low to close at 15,728 levels on the weekly expiry day. Among the sectors, selling pressure across metal, banking and pharma pack widened the losses. The broader markets too ended in the red and lost in the range of 0.1-0.4 per cent.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Pessimistic global cues dented the morale of Dalal Street with selling pressure seen across the sectors amid high volatility. Global markets were deep in the red, shadowing a weakness in the Asian markets following the widening Chinese tech crackdown and concerns over the country’s economic recovery. As we kickstart first quarter results season, initial releases of IT sector and a good number of lucrative IPOs will be in focus for the coming weeks.”
Results to be in focus
Global markets were deep in the red, shadowing a weakness in the Asian markets following the widening Chinese tech crackdown and concerns over the country’s economic recovery. As first quarter results kick off, initial releases of IT sector and a good number of lucrative IPOs will be in focus.
Most Asian markets witnessed a soft day and selling was intense particularly in Malaysia and Hong-Kong. Malaysian shares slumped and the ringgit hit a more than ten-month low on Thursday after the biggest political party of the country’s ruling coalition called for Prime Minister Muhyiddin Yassin’s resignation at a time when the country remains in a COVID-19 lockdown. Hong Kong stocks slumped to a six-month low, as tech firms tumbled amid persistent regulatory worries.
Markets would first react to TCS numbers in early trade on Friday and that might set the tone for the result of the session as well, said an analyst. “Further, demand scenario and management commentary will be crucial factors to watch in Q1FY22 results. We suggest keeping a check on naked leveraged positions and wait for clarity. Investors, on the other hand, should not read much into the intermediate correction and continue with the “buy on dips” approach in fundamentally sound counters with a long-term view,” said Ajit Mishra, VP – Research, Religare Broking.
Volumes on exchanges were little lower than recent averages in cash markets, though NSE derivatives markets were quite active, particularly in weekly index options expiring on Thursday. Mid-cap and small-cap indices continued their outperformance and fared much better than the benchmarks. The NSE Mid-Cap 100 index fell 0.42 per cent, while the NSE Small-Cap index was flat for the day.
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