India VIX, barometer of volatility and fear, also plunged in early trade despite a weekly expiry scheduled today. Some pharma and auto stocks were under heavy selling pressure.
How are bluechips doing
After opening in the green, benchmark indices plunged lower. At 10.35 am, BSE flagship Sensex was down 415 points, or 0.69 per cent, to 59,592. NSE benchmark Nifty declined 132 points, or 0.74 per cent, to 17,766.
“On Wednesday, it formed a small bodied Bearish candle on a daily scale and is forming lower tops – lower bottoms, indicating limited upside. Now it has to cross and hold above 18,000 for any kind of up move towards 18,200. While on the downside, the index can drift towards key support at 17,777 and lower,” said Motilal Oswal.
In the 50-share pack Nifty, Hindalco Industries was the biggest gainer, up 1.80 per cent. SBI, Shree Cement, Grasim Industries, Bajaj Finserv, Titan,
and Power Grid were among other gainers.
ONGC was the top loser in the pack, down 1.33 per cent. Tata Motors, Maruti Suzuki, Dr Reddy’s Labs, Divi’s Labs, M&M, Hero MotoCorp and Eicher Motors were among those that traded in the red.
FACTORS AFFECTING MARKET
UK inflation: British inflation has hit a 10-year high as household energy bills rocket, bolstering expectations the Bank of England will raise interest rates in December.
Tapering will be a slow process: Chicago Federal Reserve President Charles Evans on Wednesday reiterated that it will take until the middle of next year to complete the Fed’s wind-down of its bond-buying program even as the central bank checks to see if high inflation recedes as he expects.
Broader markets
Broader market indices were trading lower, in-line with their headline peers in morning trade. Nifty Smallcap was down 0.15 per cent, while Nifty Midcap declined 0.28 per cent. Broadest index on NSE, Nifty 500, was down 0.22 per cent.
Godrej Properties, Voltas, SRF, Tanla Platforms, Trident and Birlasoft were gainers from the space while Zensar Tech, Lux Industries, Carborundum Universal, Oil India, Bharat Forge and Tata Power were under selling pressure.
Global markets
Asian stocks opened lower on Thursday with investors disheartened by Wall Street falls on profit-taking and their focus shifting to the expected announcement this week of new stimulus in Japan.
MSCI’s index of Asia-Pacific shares outside Japan was down by 0.53 per cent. Japan’s Nikkei plunged 0.72 per cent. South Korea’s Kospi tanked 0.35 per cent. Australia’s ASX 200 added 0.23 per cent. China’s Shanghai dropped 0.36 per cent. Hong Kong’s Hang Seng fell 1.43 per cent.
