Sensex Today: Indian equity markets edged lower on Thursday amid weak global cues and muted foreign flows. Key indices Nifty50 declined over 50 points to trade below 17,450 levels and the S&P BSE Sensex lowered over 200 points to trade at 58,873 levels.
A similar trend was seen across broader markets as Nifty Midcap 100 and Nifty Smallcap 100 slipped up to 0.8 per cent.
All sectors plunged in the sea of red as investors’ risk appetite worsened. Nifty Auto, Nifty Metal, and Nifty Consumer Durables indices declined the most – over 1 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The recent 3 per cent rally has taken the Nifty to just 6 percent below its 52-week high. This rally in a difficult global equity environment has surprised many, including the FIIs, who have slowed down their selling. Sustained flows into mutual funds, particularly via the SIP route, is a major factor imparting strength to the market even in the context of negative global economic news. So long as DIIs are flush with funds markets are unlikely to correct sharply. Fundamental support to the market is coming from the good Q2 numbers, particularly from financials. This week is a results-heavy week and most results from Nifty constituents are likely to be good. The rising US bond yields and a rising dollar are hitting all other currencies hard. This will continue to be a potential headwind for equity markets till US inflation starts showing a moderating trend.”
Rupee Opens
The Indian rupee opened marginally higher at 82.98 per dollar on Thursday against the previous close of 83.02.
Global Cues
Asian share markets fell on Thursday as investor fears over a looming recession crimped risk appetite, while Treasury yields rose on expectations that the Federal Reserve will remain aggressive in its interest rate hikes.
Tokyo shares opened lower on Thursday after US stocks tumbled, with Treasury yields jumping as recession worries deepen. The benchmark Nikkei 225 index lost 1.01 per cent, or 275.63 points, to 26,981.75 at the open, while the broader Topix index fell 0.76 per cent, or 14.56 points, to 1,890.50.
US stocks snapped a two-day streak of gains on Wednesday as weakness in shares of Abbott Laboratories and a rise in Treasury yields sapped momentum from the current earnings season and outweighed a surge in Netflix Inc shares.
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