MARKET COMMENT Jayant Manglik, president, Religare Broking Markets started the week on feeble note and lost over a percent. Weak global cues combined with widening trade deficit, due to continuous fall in rupee against the dollar, dampened the sentiment. Selling pressure was witnessed across the board and almost all the sectoral indices ended lower. The fall was evident, citing deteriorating local cues and continuous threat of trade war escalation. We feel it's a normal correction, considering the rise that we had in Nifty in recent past. Indications are in the favour of further decline ahead and we expect Nifty to find support around 11,300. Trades have no option but to align their position accordingly and avoid naked longs
In the broader markets, the S&P BSE MidCap index fell 1.7 per cent, while the S&P BSE SmallCap index ended down 1.1 per cent.
The Indian rupee and bonds sunk after the current-account deficit widened to the most in five years, as an emerging-market rout raises investor scrutiny of countries with worsening balance of payments.
MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 0.9 per cent to the lowest since July 2017, extending losses from last week when it dropped 3.5 per cent for its worst weekly showing since mid-March.
Chinese shares were battered with the blue-chip index off 1.4 per cent while Shanghai’s SSE Composite stumbled 1.2 per cent. Hong Kong’s Hang Seng index slipped 1.3 per cent.
(with Reuters inputs)