The risk-off mood in global markets may gather strength on fresh Covid cases in Europe and lockdowns in countries like Austria. The dollar index rising above 96 is another concern while the decline in crude is a positive for India.
“Indian markets continue to see selling pressure as the bullish momentum seems to have been broken. Repeal of farm laws and falling through of reliance-Aramco deal is sentimentally negative and could weigh on the markets in the near term. Telecom stocks would be in focus after Bharti announced a sharp hike in prepaid tariffs,” said Sageraj Bariya, Vice President – Institutional Sales, East India Securities.
How are bluechips doing
After opening in the red, benchmark indices plunged further. At 10.15 am, BSE flagship Sensex was down 479 points or 0.85 per cent to 59,126. NSE benchmark Nifty declined 138 points or 0.78 per cent to 17,627.
“The markets have seen some drawdown over the past week and giving a good opportunity for entry to quality stocks. The Nifty50 seems to trade with the support of 17,700 with resistance at 18,000 while Bank Nifty has support of 37,500 with resistance of 38,450,” said Mohit Nigam, Head – PMS, Hem Securities.
In the 50-share pack Nifty, Bharti Airtel was the biggest gainer, up 5.52 per cent. Cipla, ONGC, Power Grid, JSW Steel, Asian Paints, Wipro, Hindalco Industries and IndusInd Bank were among other gainers.
Reliance Industries was the top loser in the pack, down 3.58 per cent. Maruti Suzuki, Bajaj Finance, Kotak Mahindra Bank, Eicher Motors, Bajaj Finserv and UPL were among those that traded in the red.
FACTORS DRIVING MARKETS
Covid lockdowns: Austria said it would reintroduce lockdowns — and make vaccination mandatory from February — to fight a worrying jump in new infections. Other countries including Germany, Slovakia, the Czech Republic and Belgium were also bringing in measures.
Rate hikes earlier than expected?: Bundesbank president Jens Weidmann publicly contradicted the European Central Bank’s official line on Friday, warning that inflation may stay above 2 per cent for some time and that the ECB should avoid any commitment to keeping the money taps open.
Crude oil falls: Oil extended losses as major consumers including the United States considered releasing some of their reserves to keep a lid on prices, which have been a key reason for the jump in inflation this year.
Broader markets
Broader market indices were trading down, underperforming their headline peers in morning trade. Nifty Smallcap was down 0.84 per cent while Nifty Midcap declined 0.83 per cent. Broadest index on NSE, Nifty 500 was down 0.58 per cent.
Vodafone Idea, IRCTC, Natco Pharma, Engineers India, Tanla Platforms and Suzlon Energy were gainers from the space while Dilip Buildcon, Jubilant Ingravia, JK Lakshmi Cement, JSW Energy, Gujarat State Petronet and Tata Elxsi were under selling pressure.
Global markets
Asian markets mostly fell Monday. In early trade, Tokyo, Hong Kong, Sydney, Wellington, Taipei, Manila and Jakarta were all down, though there were gains in Seoul and Singapore.
