Indian stock market index Sensex today fell over 500 points, extending its losses to the fourth day. In four days, Sensex has lost over 2,000 points in a selloff, which some analysts attributed to pre-Budget nervousness and broader profit-taking. The Nifty today tumbled over 1% to move below 14,100. Among the Sensex stocks, Dr Reddy’s Lab, Sun Pharma, HDFC Bank, HDFC, Asian Paints, and Axis Bank were down between 2% and 3%.
Here are 10 updates about Indian markets:
1) “We had two consecutive days of FII selling in the market. It appears that the market is a bit apprehensive of some budget tax proposals which may not be market-friendly. We don’t know. So it makes sense to wait for the budget and then take a call on investment strategy,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹765.30 crore on a net basis on Monday, according to exchange data. On Friday, they had sold over ₹600 crore.
3) However, Vijayakumar of Geojit Financial Services noted that IMF revising global GDP growth upwards and India’s growth to 11.5% in 2021 is “good news”.
4)”The sharp turnaround in growth will ensure that the current trend of impressive corporate results will sustain. L&T’s results, particularly the order book, bodes well not only for the company but also for the economy,” he added.
5) L&T shares were down about 2% in today’s trade.
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6) In a note, HDFC Securities said: “Pre Budget nervousness has resulted in some unloading. Locking up of large sums in the recent IPOs have also led to this sell-off.”
7) Poor advance decline ratio hints at broader profit-taking, the brokerage added. The BSE midcap index was today down about 0.5%.
8) Asian markets were mixed today ahead of outcome of a Federal Reserve policy meeting which wraps up later in the day.
9) Global markets have meandered since last week as investors weighed solid corporate earnings results against renewed worries that troubles with COVID-19 vaccine rollouts and the spread of new variants of coronavirus might delay a recovery from the pandemic.
10) Investors are also concerned about a possible delay in rollout of President Joe Biden’s $1.9 trillion coronavirus relief plan. (With Agency Inputs)
