The S&P BSE Sensex started on a cautious note, slipping over 150 points in morning trade on Monday tracking muted trend seen in other Asian markets. The fall in the index was led by losses in ITC, ICICI Bank, HDFC, HDFC Bank and Infosys.
The Nifty50 slipped below its crucial support level of 8,800 weighed down by losses in IT, realty, power, metal, capital goods, consumer durables, auto, and telecom stocks. The market fell tracking a sharp drop in crude oil prices on Friday after reports suggested that differences between Iran and Saudi Arabia may hurt a decision on output freeze when the Organisation of Petroleum Exporting Countries (OPEC) meets later this week.
US markets ended lower on Friday and cues from Asian markets early this morning were not too strong.
At 09:20 am, the 30-share index was trading 135 points lower or 0.47 per cent at 28,533. It touched a high of 28,630.92 and a low of 28,506.72 in morning trade.
The Nifty50 was trading at 8,783 down 48 points or 0.54 per cent. It touched a high of 8,809.55 and a low of 8,782.55 in the first 30 minutes of trade.
The S&P BSE Midcap Index was down 0.19 per cent and BSE S&P Smallcap Index was trading flat.
Dr Reddy’s Laboratories (up 0.74 per cent), RIL (up 0.7 per cent), Power Grid (up 0.60 per cent), TCS (up 0.58 per cent), and Lupin (up 0.20 per cent) were the major Sensex gainers.
ICICI Bank (down 1.7 per cent), HDFC (down 1.4 per cent), Adani Ports (down 1.5 per cent), and Bajaj Auto (down 0.26 per cent) were the major Sensex losers.
Here’s a list of factors that weighed on the market sentiment today:
Crude prices slumped 4% on Friday: Brent crude oil plunged 3.7 per cent on Friday to settle the week at $45.89 a barrel. US crude oil price lost 4 per cent to $44.48 a barrel level. Saudi Arabia did not expect a decision in Algeria, where the Opec and other big oil producers are set to convene for the September 26-28 talks, Reuters said quoting sources.
Cues from Singapore muted: At 07.45 am, Nifty50 futures on the Singapore Stock Exchange were trading 43.50 points lower at 8,790.50, indicating a negative opening for the domestic market.
“Despite relatively higher valuations, the market has been resilient, largely on the back of consistent global flows. One needs to be selective in stock picking and must have a longer time horizon while investing in this market,” Dipen Shah, Senior Vice President & Head PCG Research, Kotak Securities.
Nifty50 made a Spinning Top pattern: On a technical basis, the 50-pack index has made a Spinning Top candlestick pattern on weekly charts. “The spinning top is a indecision type of pattern which when placed after the strong rally could be reversal signal. However we need to confirm the same by the price itself. Holding above 8,780 is the key for the bulls. On the other hand bears will take control below the same level,” said Rohit Gadia, Founder & CEO, CapitalVia Global Res ..
FPI flow to influence sentiment: Data showed FPIs pulled out Rs 1,643 crore worth of dollars from the domestic market in four sessions to Thursday. “In terms of flows, while FIIs have been buyers over the past few weeks, lately they may be taking a bit of a breather. But domestic institutions have been buyers in the market and in this kind of a setting, any correlation of our market against global markets would be lower,” said Prateek Agarwal, Business H ..
FPI flow to influence sentiment: Data showed FPIs pulled out Rs 1,643 crore worth of dollars from the domestic market in four sessions to Thursday. “In terms of flows, while FIIs have been buyers over the past few weeks, lately they may be taking a bit of a breather. But domestic institutions have been buyers in the market and in this kind of a setting, any correlation of our market against global markets would be lower,” said Prateek Agarwal, Business Head & CIO,ASK Investment Manager.
Asian markets stay negative: Japan’s benchmark Nikkei was trading 0.89 per cent lower at 16,605 on Monday morning. China’s CSI300 fell 0.73 per cent to 3,251. Other Asian indices, including Hong Kong’s Hang Seng (down 0.91 per cent), South Korea’s Kospi (down 0.28 per cent) and Taiwan’s TWSE (down 0.70 per cent), were trading lower.
US markets fell on Friday: The Dow Jones Industrial Average index dropped 131.01 points, or 0.71 per cent, to settle at 18,261.45. The S&P500 index declined 12.49 points, or 0.57 per cent, to 2,164.69. The Nasdaq Composite lost dropped 33.78 points, or 0.63 per cent, to 5,305.75.