Stock Market Today: The benchmark indices for Indian equities continued to decline on Monday as investors searched for hints about potential US rate increases and worried that China may tighten Covid regulations in reaction to reported deaths.The broad NSE Nifty index dropped 135.10 points, or 0.74 percent, to 18,172.55, while the BSE Sensex index dropped 468.58 points, or 0.76 percent, to 61,194.90. These declines are reflective of a sea of red in other Asian bourses in early trade.
Bajaj Finance, Mahindra & Mahindra, Bajaj Finserv, ITC, Reliance Industries, Tech Mahindra, HDFC, Infosys, Tata Consultancy Services, and Nestle were among the Sensex pack’s top laggards.
Axis Bank, Bharti Airtel, Maruti, Hindustan Unilever, and Tata Steel were among the winners.
The elation brought on by the recent decline in US inflation has subsided
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “the excitement caused by the recent decrease in US inflation has run its course and the market is likely to wait for further data on the trajectory of US inflation and interest rates.”
The benchmark Hang Seng Index, which lost more than 3% of its value, led the slide during Asian hours. The MSCI AC Asia Pacific index hit a one-week low as US futures tumbled.
Stock Market Today: Universities and schools have been locked down in China
On Saturday, China reported its first Covid-related fatality in six months; on Sunday, there were two more. In a city close to Beijing that was supposed to be a test case for loosening severe restrictions, schools have been closed, universities have been locked down, and residents have been urged to stay at home for five days.
The fresh incidents of Covid infections and deaths in China offer a challenge to the government and kill hopes of an early reduction in rigorous regulations, according to Steve Brice, Chief Investment Officer for Wealth Management at Standard Chartered Bank, who spoke to Bloomberg.
China’s markets have recently experienced a very strong uptick, Says Mr. Brice
According to Mr. Brice on Bloomberg Radio, “we’ve witnessed a pretty significant bounce in China markets in recent times” due to hopes for an easing of restrictions. Investors will therefore be keenly eager to observe how the market responds.
Beyond Asia, traders will be looking for clues in the minutes of the most recent Fed meeting on Wednesday to determine when and how quickly interest rates will increase.
“Early Monday transactions are likely to be difficult for markets as they follow the SGX Nifty and other Asian indices’ declines. The negative outlook can be linked to the Fed officials’ critical tone over the weekend, “the senior vice president for research at Mehta Equities, Prashanth Tapse, said.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.
