Stock Market

Global cues drag D-Street; Sensex loses 128pts, Nifty ends lower


Chillicious Team

Tracking global peers, the market has ended the day in the red. The Sensex barely held onto 25100 mark, down 127.9 points or 0.5 percent at 25101.73. The Nifty just about held onto 7700 and was down 40.45 points or 0.5 percent to end at 7706.55.

The midcaps underperformed today as well after earnings disappointed.

Asian markets joined the slump in global equities on Wednesday, as the US dollar strengthened and oil prices lost ground. Helping to weigh oil and other commodities, the US dollar advanced. A stronger greenback pressures commodity prices, which are denominated in dollars.

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company feels that the markets globally had been looking for a reason to correct — which they got due to  Bank of Japan’s move to stand pat on monetary policy but any fall only accentuates the appeal of Indian shares.

In an interview with CNBC-TV18, Shah said there were many positives going for the Indian economy that would lift stocks. He, however, a conceded that a bad monsoon, unlikely as it looks currently, would be an upset for markets.

According to a HSBC report, India’s GDP is likely to “auto correct”, and the headline growth of the country in this fiscal is expected to remain flat at 7.4 percent. The global financial services major says India’s new GDP series seem to exaggerate the economy’s true growth rate and this overestimation is likely to narrow over the next few quarters.

Stock-wise auto, banks, capital goods, FMCG, oil & gas and metals dragged benchmark indices.

Adani Ports tanked 12 percent while Tata Motors, Hindalco, Tata Steel and BHEL were loser in the Sensex. HDFC twins, NTPC, Infosys and GAIL were gainers

Meanwhile, Big brother Sajjan Jindal has bailed out his younger brother and JSPL’s top boss Naveen Jindal, by acquiring a 1,000 mega watt power plant in Chhattisgarh. The deal structure values the power plant at Rs 4,000 crores which will help JSPL reduce its massive debt burden.

Oil steadied just below USD 45 a barrel, pressured by expectations US crude inventories will rise further from a record high, although reduced production in Canada’s oil sands region lent support.

Brent crude has fallen more than 7 percent from a 2016 high hit on Friday in response to rising output from the Organization of the Petroleum Exporting Countries, signs of economic slowdown in the United States and Asia, and a stronger dollar.