The BSE Sensex tanked more than 1300 points or 2.23 per cent on Monday, opening at 57524.27 points. Similarly, the NSE Nifty 50 opened at 17181.90 points, down 377.00 points or 2.15%. However, the markets recovered later during the morning session.
The Sensex was down 740.36 points (1.26 per cent) at 58,093.51, while the Nifty 50 was trading at 17,343.75, down 215.15 points (1.23 per cent) at 12:30 PM on Monday.
It was observed that stocks like Nestle India, Britannia, Hindustan Unilever, and Tata Consumer Products were in the green. On the other hand, some top losers were Tech Mahindra, Infosys, Wipro, JSW Steel and HCL Technologies.
Benchmark indices experienced a fall amid negative global cues. Globally, markets fell after the head of the US Federal Reserve indicated high-interest rates will continue for some time to curb inflation.
Powell on Friday reiterated his message and said that the US Fed’s overarching focus is to bring inflation back to 2% because the economy does not work for anyone without price stability.
“The sharp rise in the Dollar index above 109 and the 10-year bond yield spiking to 3.1 per cent are negative for capital flows to EMs like India. FPIs are unlikely to continue buying in India in this scenario. The ‘buy on dips’ texture of the market is unlikely to hold. Investors should not rush in to buy the dips now. Better wait for the dust to settle,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Apurva Sheth, Head of Market Perspectives, Samco Securities, said that the markets are around 17400 levels and are likely to serve as make or break levels. He said that a break below this level may result in a retest of the 17,100 level. Until then traders should have a mildly bullish outlook.
Written by Simran Bafna
