LIVE market updates: Indian benchmarks opened lower on Monday as investors continue to track the spread of the Omicron Covid variant. The World Health Organization recently warned that the number of cases is doubling in 1.5 to 3 days in areas with community spread.
That apart, Asian stocks dropped in early trading today after China slashed its benchmark lending rate for the first time in more than one-and-a-half years. The move likely indicates policymakers concerns around the slowing economic growth in China, which worried investors.
The BSE Sensex quoted 653 points lower at 56,358 level while the Nifty50 broke below the 16,800-mark at 16,795, down 190 points. Both the indices were down over 1 per cent each.
Post opening, the indices extended decline and hit lows of 56,112 (down nearly 900 points) and 16,706 (down 285 points).
Tata Motors (fell 3.5 per cent), Tata Steel, JSW Steel, SBI, HDFC Bank, Hindalco, IndusInd Bank, Bajaj twins, Axis Bank, Coal India, Adani Ports, Maruti Suzuki, ONGC, and Ultratech Cement were the top laggards (all down over 2 per cent).
In the broader markets, the BSE MidCap and SmallCap indices fell 2 per cent each.
“Rising inflation, hawkish central banks, exploding Covid cases caused by the Omicron variant, sustained selling by FIIs and slowing growth momentum in the developed economies combined to produce the perfect storm for the markets. These negative factors persist, causing concerns about further downtrend in the market, particularly if FIIs continue to sell. But negative sentiments are unlikely to last long. Omicron variant, though fast spreading, has not proved to be highly virulent as feared. Also, FIIs will turn buyers soon when valuations become attractive. Retail investors can use the corrections to buy high quality stocks, particularly financials, whose valuations have become attractive,” says VK Vijayakumar, Cheif investment Strategist at Geojit Financial Services.
Among individual stocks, shares of Future Retail zoomed 20 per cent after India’s antitrust body competition commission of India (CCI) on Friday said Amazon’s 2019 deal with Future will remain in abeyance, citing US e-commerce major’s failure to notify certain commercial arrangements as part of 2019 deal. The competition watchdog has also imposed ₹200 crore penalty on Amazon.
That apart, Cipla added 1 per cent after the drug major received approval from the USFDA to market the Lanreotide injection, used for the treatment of acromegaly and gastroenteropancreatic neuroendocrine tumors, in the American market.
Among sectors, the Nifty Bank tanked 2.6 per cent, at 34,672 level. Meanwhile, all the sectoral indices are in the red with the Nifty Metal index down 3.5 per cent.
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Pre-open session
LIVE market session:
Benchmark indices are suggesting a weak start for the Indian markets. The BSE Sensex is down nearly 550 points at 56,669 levels. The Nifty50, too, was below 16,800-mark at 16,796 level.
BREAKING NEWS:
According to TV reports, the Finance Ministry has asked market regulator Sebi to halt trading in certain commodity derivatives (Paddy, Wheat, Chana, Mustard Seeds, Soya Bean, Crude Palm Oil & Moong) for 1 year.
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LIVE market updates: A gap-down start could be on cards for key benchmark indices as global sentiment remains cautious amid rising Omircon coronavirus cases wordlwide.
At 8:10 AM, SGX Nifty was down around 100 points at 16,900 levels, compared with Nifty’s spot close of 16,985 on Friday.
Stock-specific news flow, FII activity, primary market action, and global cues will guide investors today.
Primary market action
Shriram Properties will be in focus today as the stock makes its debut on Monday.
Besides, Supriya Lifescience IPO, which so far has received subscription up to 5.69 times the issue size, will close today.
Global cues
The US markets ended with significant losses on Friday. The S&P 500 was down a per cent, while Dow Jones plunged 1.5 per cent. The Nasdaq, however, was down just 0.1 per cent.
Meanwhile, oil prices rose on the back of upbeat US Fed economic outlook. Brent crude was up 1.5 per cent at $75.02 a barrel, and WTI crude added 2.1 per cent to $72.38 a barrel.
Major markets in Asia this morning were largely negative. Kospi had shed 0.9 per cent. Nikkei had slipped 0.6 per cent, while Hang Seng and Straits Times were down 0.5 per cent each. Taiwan was down 0.1 per cent, while Shanghai was up 0.1 per cent.
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