Indian markets on expected lines opened sharply lower after US CPI inflation moderated but at the same time beat expectations, failing to ease investor concerns about the outlook for the economy and the interest rate. Earlier in the day, Nifty broke above 16,000 levels and then the cut extended to more than 2 percent. Bank Nifty felt even more pain with the correction stretching to around 3.5% towards the close of the trading session.
In it close, Nifty liquidated with a deep cut of 2.22% or 359 points at 15,808, while Sensex plummeted 2.14% to 52,930. The broader markets also underperformed the major indices with the Nifty Midcap 100 breaking down.
Among the Nifty sector indices, all indices traded in the red, with the highest cut in the Nifty PSB followed by Nifty Metal and Nifty Private Banking.
In the moderate market, Wipro emerges as the main Nifty winner with some gains followed by Eicher Motors, HCL Tech and TCS, while Nifty pack laggards include stocks such as Adani Ports, IndusInd Bank, Tata Steel, Hindalco and Tata. Engines.
On the investment strategy to follow to buy the current market downturn, Saurabh Jain, Vice President of Research at SMC Global Securities, told one of the major dailies: “The Nifty 50 Index has fallen by around 14.50 percent since its highs of 18,604 levels and speculations are high that the market will bottom any time soon. However, it would be difficult to know exactly where and when the market would bottom. Therefore, one should invest 40 percent of the surplus amount at current levels and continue to invest the rest in two parts after the 7 percent drop from now.”
European markets in line with global peers see collapse with German DAX and French CAC falling more than 2%.
Meanwhile, the rupiah in today’s trading hit an all-time low on the rise of the dollar index and continued dollar outflows.
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Story first published: Thursday, May 12, 2022, 3:47 PM [IST]