Tracking the drop in Asian equities due to fresh coronavirus restrictions in China and the chances of an extended US Federal Reserve tightening cycle, benchmark equity indices opened lower on Monday, led by banking, financial, auto and IT stocks.
At 9.42 am, BSE Sensex was trading 511 points or 0.83% lower at 61,152. Nifty50 was trading at 18,152, down 154 points or 0.85%
“There is a strong tailwind and a strong headwind which can sway the market now. The tailwind is the sharp decline in Brent crude to $86.75, which is a big macro positive for India. But this tailwind is unlikely to take the market higher since the headwind in the form of steadily declining momentum in the recent market uptrend, is very strong,” V K Vijayakumar, Chief Investment Strategist at
said.
“The optimism driven by the recent decline is US inflation has run its course and the market is likely to wait for further data on the direction of US inflation and interest rates. So, this is the time to play defensively rather than taking risky shots at the goal. Cautious defensive games can be a good short-term strategy,” Vijayakumar added.
Among Sensex stocks, M&M,
, , , Dr Reddy’s Lab and were the top losers, falling around 1-1.75%. , , , ITC, , TCS and also opened lower.
However,
, , , , , HUL and L&T opened with the gains.
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