The Indian Sensex stock index today fell more than 500 points, extending its losses to the fourth day. In four days, Sensex has lost more than 2,000 points in a selloff, which some analysts attributed to pre-budget nervousness and broader profit-taking. Nifty today fell more than 1% to move below 14 100. Among Sensex shares, Dr Reddy’s Lab, Sun Pharma, HDFC Bank, HDFC, Asian Paints and Axis Bank fell between 2% and 3%.
Here are 10 updates on the Indian markets:
1) “We had two consecutive days of FII sales in the market. It seems that the market is a bit concerned about some budget tax proposals that may not be market-friendly. We don’t know. So it makes sense to wait for the budget. and then take a call on investment strategy, “said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
2) Foreign institutional investors were net sellers in the capital market, as they downloaded shares for value ₹765.30 crore net on Monday, based on exchange data. On Friday, they had been sold ₹600 crore.
3) However, Vijayakumar of Geojit Financial Services noted that the IMF’s upward revision of world GDP growth and India’s growth to 11.5% in 2021 is “good news”.
4) “The sharp change in growth will ensure that the current trend of impressive corporate results is maintained. The results of L&T, in particular the order book, bodes well not only for the company but also for the economy,” he added.
5) L&T shares were down approximately 2% in today’s trading.
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6) In a note, HDFC Securities said: “The pre-budget nervousness has led to some discharges. The blocking of large sums in recent IPOs has also led to this liquidation.”
7) A poor advance decline rate suggests broader profit taking, the brokerage added. The BSE mid-cap index dropped around 0.5% today.
8) Asian markets were mixed today ahead of the outcome of a Federal Reserve policy meeting that concludes later in the day.
9) Global markets have moved since last week as investors weighed strong corporate earnings results against renewed concerns that problems with the launch of the COVID-19 vaccine and the spread of new variants of the coronavirus could delay recovery from the pandemic.
10) Investors are also concerned about a possible delay in the launch of President Joe Biden’s $ 1.9 trillion coronavirus relief plan. (With contributions from the agency)
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