Stock Market: Market slowed down in preopening itself, Sensex lost 158 points in early trade, Nifty also suffered loss
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stock market: The market started sluggish on the third trading day of the week. Earlier, Japan’s Nikkei was trading near 32300 in Asian markets with a slight decline. While the Korea Kospi index had reached the level of 2600 with a strength of 1 percent. The local stock markets opened with a downward trend on Wednesday due to the weak trend in the global markets and continuous withdrawal of foreign funds. Traders are awaiting the results of the Reserve Bank’s Monetary Policy Committee meeting and US inflation data. The results of the Monetary Policy Committee meeting will be announced on Thursday. BSE’s 30-share Sensex fell 158.2 points to 65,688.30 in early trade. The NSE Nifty was trading at 19,540.10 points with a loss of 30.75 points. ICICI Bank, Maruti, HCL Tech, Hindustan Unilever, Wipro, TCS, Reliance Industries and IndusInd Bank were among the losers in the Sensex pack. On the other hand, Mahindra & Mahindra, JSW Steel, Titan, Bharti Airtel, Tata Motors and Tech Mahindra were among the gainers. Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hangseng were among the losers in other Asian markets. Whereas South Korea’s Cospi was in profit. Global oil benchmark Brent crude was trading at $85.98 per barrel with a loss of 0.22 per cent.
Investors cautious about monetary policy
This week, ahead of the Reserve Bank of India’s monetary policy review and US inflation data, investors took a cautious approach, due to which the market declined. The three-day meeting for the bi-monthly monetary policy review of the Monetary Policy Committee (MPC) headed by Reserve Bank Governor Shaktikanta Das began on Tuesday. The results of the meeting will be announced on Thursday, 10 August. There is a possibility that RBI will once again keep the policy rate unchanged. Vinod Nair, Head of Research, Geojit Financial Services, said that despite the decline in bond yields, investors are adopting a cautious approach on the global front. Concern has also increased in the global market due to a significant decline in China’s exports. He said that FIIs remain sellers in the domestic market. However, the market is getting support from the buying of domestic institutional investors. Sector-wise, public sector banks and pharmaceutical stocks gained momentum. Mid and small cap stocks have outperformed the benchmark index, indicating strength in this segment.
BSE Smallcap gained 0.25 percent
PowerGrid, Mahindra & Mahindra, JSW Steel, HCL Technologies, Sun Pharma, Nestle, IndusInd Bank, Reliance Industries, Bharti Airtel and ITC were major losers in Sensex stocks. On the other hand, the gainers included Tech Mahindra, Wipro, Bajaj Finance, State Bank of India, Bajaj Finserv, Axis Bank, Titan and ICICI Bank. BSE Smallcap gained 0.25 percent and Midcap 0.15 percent. In other markets of Asia, South Korea’s Cospi, China’s Shanghai Composite and Hong Kong’s Hangseng were in loss while Japan’s Nikkei was in profit. There was a declining trend in early trade in European markets. US markets remained in positive territory on Monday.
Rupee rises 10 paise to 82.81 per dollar in early trade
Recovering from an eight-month low, the rupee climbed 10 paise to 82.81 against the US dollar in early trade at the Interbank Foreign Exchange market on Wednesday. Due to the weakness in the dollar against other foreign currencies, the rupee gained. Analysts said a weak trend in local equities, outflow of foreign funds and crude oil prices crossing $85 per barrel limited the rupee’s gains. Market participants are awaiting US inflation data, UK GDP data and the outcome of the Reserve Bank’s Monetary Policy Committee meeting. The rupee opened at 82.83 at the interbank forex market, and then recovered to 82.80. Later the rupee was trading at 82.81 per dollar. This is an increase of 10 paise over the previous closing level. On Tuesday, the rupee had closed at an eight-month low of 82.91 per dollar. Meanwhile, the dollar index, which gauges the US dollar’s position against a basket of six major currencies, declined 0.07 per cent to 102.45. Global oil benchmark Brent crude futures were trading at $85.99 per barrel with a loss of 0.21 per cent.
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