Markets trade lower on weak global trends

Equity benchmark indices declined in early trade on Monday after rallying in the past two straight sessions amid weak trends from the US markets and selling in banking stocks
Markets trade lower on weak global trends
Markets trade lower on weak global trends
Published on

New Delhi: Equity benchmark indices declined in early trade on Monday after rallying in the past two straight sessions amid weak trends from the US markets and selling in banking stocks.

After a record-breaking rally, the 30-share BSE Sensex went lower by 204.64 points to 73,914.75 due to profit taking. The Nifty slipped 49.15 points to 22,444.40.

PSU Watch is now on Whatsapp Channels. Click here to join

Among the Sensex firms, Tata Steel, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank, Infosys, and Tata Motors were the major laggards.

Bajaj Finserv, UltraTech Cement, ITC, and Bajaj Finance were among the gainers.

In Asian markets, Seoul and Tokyo were quoting lower, while Hong Kong and Shanghai traded in the green territory

The US markets ended in the negative territory on Friday.

Global oil benchmark Brent crude dipped 0.68 percent to USD 81.52 a barrel.

The stock markets were closed on Friday for Mahashivratri.

Foreign Institutional Investors (FIIs) bought equities worth Rs 7,304.11 crore on Thursday, according to exchange data.

"The dominant trend in the market in the near-term is likely to be the underperformance of the broader market, particularly the small-cap space.

"Since restraint imposed by some mutual funds by stopping lump sum investment into their small-cap schemes has failed to stem the flow of funds into the over valued small-cap segment, SEBI has stepped in with regulatory action asking the mutual funds to do stress tests in their mid and small-cap schemes.

"Since the market is scaling new highs consistently, the undertone of the market remains bullish and, therefore, investors should remain invested. Large caps are likely to witness buying on dips while the broader market will face headwinds," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

On Thursday, the 30-share BSE Sensex advanced 33.40 points or 0.05 percent to settle at a new peak of 74,119.39, while the broader Nifty rose by 19.50 points or 0.09 percent to close at a record 22,493.55.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

logo
PSU Watch
psuwatch.com