Amid weak global cues, the Indian indices opened lower on August 5 with Nifty below 24350.
Sensex Today: Amid weak global cues, the Indian indices opened lower on August 5 with Nifty below 24350.
The Sensex was down 1,310.47 points or 1.62 percent at 79,671.48, and the Nifty was down 404.40 points or 1.64 percent at 24,313.30. About 442 shares advanced, 2368 shares declined, and 154 shares unchanged.
Apollo Hospital and Sun Pharma were among major gainers on the Nifty, while losers were Maruti Suzuki, Tata Motors, Hindalco, Titan Company and Tata Steel.
“The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in US job creation in July and the sharp rise in US unemployment rate to 4.3%. Geopolitical tensions in the Middle East also are a contributing factor. Another significant factor is the unwinding of the Yen carry trade which is bleeding the Japanese market. The crash in Nikkei by above 4% this morning is an indicator of the crisis in the Japanese market. Valuations in India, driven mainly by sustained liquidity flows, continue to be high, particularly in the mid and smallcaps segments. The overvalued segments of the market like Defence and Railways are likely to come under pressure. The buy-on-dips strategy which has worked well in this bull run, is likely to be threatened now. Investors need not rush to buy in this correction. Wait for the market to stabilise,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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Global Cues
On Monday, the Korea Exchange announced that it had implemented sidecar trading curbs on the KOSPI market, suspending program trading for five minutes from 11:00 to 11:05 a.m. local time.
Japanese stocks tumbled to their weakest levels since early January on Monday, extending last week’s selloff triggered by the rout in global stock markets and worries investments funded by a cheap yen were being unwound.
The Nikkei share average is down 15% in three sessions and seemed set for its biggest three-day plunge since 2011, as banking stocks led the decline.
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On Monday, share markets in Asia fell sharply while bonds saw a boost as concerns about a potential U.S. recession drove investors away from riskier assets and increased bets on a swift reduction in interest rates to support economic growth.
Continuing the trend from Friday, Nasdaq futures dropped by 2.27%, S&P 500 futures fell 1.41%, EUROSTOXX 50 futures decreased by 0.6%, and FTSE futures were down by 0.2%.
