MARKET COMMENT Jayant Manglik, President, Religare Broking Nifty started the week on feeble note and lost over a percent, mainly pressurised by global cues. It opened gap down and remained under pressure till the end. The news of possibility of further escalation of trade war between the US and China didn't go well with the markets. Also, weakness in rupee further dented the sentiment. Mostly sectoral indices traded in line with the benchmark index and closed lower. Markets are currently dancing to the global tunes and we do not see this changing any time soon. We reiterate our consolidation view in Nifty with bias on the negative side as sustainability seems difficult at higher level. In fact it may witness fresh fall if it fails to hold above 11,300. We advise maintaining balanced approach while trading stocks and keeping positions on both sides
The S&P BSE Sensex ended at 37,586, down 505 points while the broader Nifty50 index settled at 11,378, down 137 points.
That apart, a weak rupee also affected sentiment. The domestic currency slipped to an intra-day low of 72.62 against the greenback earlier in the day. The domestic unit on Friday had surged by 34 paise to close at a one-week high of 71.84 against the US dollar on positive macro data and hopes of policy intervention by the government to defend the volatile currency.
In key stocks, Reliance Industries (RIL) fell over 2.3 per cent, while Sun Pharmaceutical Industries (Sun Pharma) cracked over 2.7 per cent. Financial stocks such as HDFC, HDFC Bank, State Bank of India (SBI) and Axis Bank fell by up to 2.5 per cent.
Among sectoral indices, the Nifty FMCG index settled 1.4 per cent lower weighed by fall in share prices of Godrej Industries and Procter & Gamble Hygiene and Health Care.
Investor sentiment also took a hit as global financial services company Goldman Sachs said India's world-beating stock market run is over. It has downgraded domestic stocks to the equivalent of a hold rating from buy. This is the first time it has lowered Indian stocks since 2014. Here are five reasons why the global research house has lowered its India rating.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.2 per cent, snapping three straight sessions of gains. Shanghai blue chips fell 1.1 per cent, while the Hang Seng shed 1.6 per cent.