Analysts will watch inflation data due later in the day closely
Domestic stock markets registered sharp losses on Monday tracking weakness in Asian peers, as caution prevailed ahead of key macroeconomic data due later in the day. The Sensex today fell as much as 318 points to hit an intraday low of 35,691, and the broader Nifty declined 102 points to touch 10,692. A broad-based selloff, led by financial, metal and energy stocks dragged the markets lower. Weakness in other Asian markets, where equities receded from recent highs, after the release of Chinese trade data also hurt investor sentiment.
Here are 10 things to know:
- At 12:23 pm, the Sensex traded 275 points lower at 35,734 and the Nifty was down 90 points at 10,704. Top laggards on the 50-scrip index were GAIL India, Wipro, Larsen & Toubro and IndusInd Bank, trading between 2.6 per cent and 3.9 per cent lower.
- Wholesale inflation eased to an eight-month low of 3.80 per cent in December, government data showed.
- Analysts awaited consumer inflation data and large caps earnings for the October-December period.
- "Results are not very clear, near term. With elections approaching, I think there is not much confidence in the market to carry forward long positions," news agency Reuters quoted Krish Subramanyam, co-head, equity advisory, Altamount Capital, as saying. "Traders are cautious, global factors will always have an influence on our market, but domestically results are coming out, banks are losing ground, so we are waiting for further hints."
- Industrial production growth stood at 0.5 per cent in November, government data showed last Friday, largely due to a contraction in manufacturing activity. That marked the slowest rate of growth in industrial production recorded since June 2017.
- “Market breadth seems to be on a weaker end and bulls appear to be exhausted at these levels,” said Ritesh Ashar, chief strategy officer, KIFS Trade Capital.
- Domestic markets tracked weakness in Asian peers, where equities receded from one-and-a-half-month highs, after partial data on trade from China showed growth in dollar-denominated exports was the highest since 2011.
- The rupee declined by 10 paise to touch 70.59 against the dollar in early trade, as the greenback strengthened against major peers overseas.
- Infosys shares jumped 3.9 per cent to touch an intraday high of Rs 710.20 apiece on the NSE. The IT major last Friday reported its earnings for the October-December period and raised its revenue forecast for the current financial year. It also announced a share buyback worth Rs 8,260 crore.
- Foreign portfolio investors (FPIs) net sold shares worth Rs 687.20 crore on Friday, while net purchases by domestic institutional investors (DIIs) stood at Rs 123.17 crore, according to provisional data from the NSE.
(With agency inputs)
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