Stock markets follow global trend, open in red

Mumbai (Maharashtra) [India], August 2 (ANI): Indian stock markets faced selling pressure during the opening session on Friday following the fall in the global markets.

The Nifty 50 index opened with a decline of 221.90 points (0.89 per cent) at 24,789 points, while the BSE Sensex index declined by 708.55 points (0.87 per cent) to 81,158.99 points during the opening session.

“Indian markets had just crossed the 25,000 mark on the Nifty. The global pressure will have a bearing on the Indian markets as well. However, with ample liquidity with domestic investors, we expect every dip to be bought into. The global risk remains a sharp US fall and a disorderly unwinding of the Yen Carry trade. A lot will depend on domestic investors absorbing selling due to global factors,” said Ajay Bagga, Banking and Market Expert.

In the Nifty 50 list, TATA Steel, JSW Steel, TECH Mahindra, BPCL, and Power Grid emerged as the top losers during the opening. The top gainers during the opening included Apollo Hospital, Hindustan UNILVR, DR Reddy, NESTLE India, and TATA Consumers with a marginal gain of less than 1 per cent.

In the broad market indices on the National Stock Exchange, Nifty VIX surged, leading to a fall in all indices, including Nifty Next 50, Nifty Small Cap, and Nifty Midcap.

In the sectoral indices, except Nifty FMCG, all other sector indices faced selling pressure and opened with a decline.

Titan Company, Hindustan Zinc, Britannia Industries, GlaxoSmithKline Pharmaceuticals, LIC Housing Finance, Delhivery, and Edelweiss Financial Services are some of the companies set to announce their quarterly results on Friday.

For the global markets, experts pointed out that the US markets fell after soft economic data. The Asian markets also followed the US, showing selling pressure during the early trade.

“Soft US economic data led to a fall in US stock indices and the US 10-year yield falling below 4 per cent. The fear in the market is that the US Federal Reserve has kept rates high and monetary policy too restrictive for too long. Asian markets have followed the US lead downwards this morning. Japanese stock markets are selling off more sharply on fears of a hawkish Bank of Japan raising rates further,” added Bagga.

The Indian stock market achieved a new milestone on Thursday, with both Nifty and Sensex reaching a record high. The markets got support from the US Federal Reserve deciding to keep the interest rates unchanged for the eighth straight time.

The Nifty closed at 25,010.00, up by 59.75 points or 0.24 per cent, and Sensex closed at 81,867.73, a rise of 126.38 points or 0.15 per cent. The Nifty’s ascent past the 25,000 mark marked a significant achievement, completing a 1,000-point rally in just 24 trading sessions, the third-fastest in its history.