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Weak global cues subdue equity markets, auto stocks slide
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SME Times News Bureau | 26 Oct, 2020
Weak global cues, along with profit booking and expensive propositions, subdued the Indian equity market on Monday.
All indices ended in the negative with metals, auto, realty and pharma falling the most.
Globally,
Asian markets were mixed with traders increasingly pessimistic if US
lawmakers will pass a new stimulus package before next week's election,
while spiking virus cases fanned worries about the economic impact of
new containment measures.
Similarly, European shares fell after
SAP, one of the region's biggest tech groups, warned that the new
coronavirus lockdowns in countries have hit demand for its services.
Besides, oil prices sank more than 3 per cent on fears that rising infections would hit demand.
The
Nifty50 on the National Stock Exchange closed at 11,767.75, lower by
162.60 points, or 1.36 per cent, from its previous close.
The Sensex closed at 40,145.50, lower by 540 points, or 1.33 per cent, from its previous close of 40,685.50.
"Nifty
has filled the upgap formed on Oct 19 and shows a lower top formation.
11,661 is the crucial level, a fall below which will mean a lower bottom
formation in addition to lower top," said Deepak Jasani, Head of Retail
Research at HDFC Securities.
"On upsides, 11,876-11,897 could provide resistance."
Vinod
Nair, Head Of Research at Geojit Financial Services, said: "Volatility
was expected as we are nearing the US election date. The prices are high
which limits the capacity of the market to handle uncertainties though
the final outcome of the election is unlikely to change the long-term
trend of the global market.
"Rising Covid cases in the US &
Europe and delay in US stimulus has added worries. Indian markets are
taking a correction from the recent rally which has factored a lot about
a uptrend in earnings growth due to positive Q2 results."
"Indian
indices are expected to remain weak in the near-term and will be driven
by the trend of ongoing Q2 result and developments in the US. A big
correction is unlikely with 11,500 as a strong support for Nifty50."
Rahul
Sharma, Market Strategist and Research Head, Equity 99, said: "Rising
Covid-19 cases and no progress on US stimulus package has been creating a
panic in the market. The Indian market followed the asian market that
got the week off to a hesitant start as surging coronavirus cases in
Europe."
"On Monday, there was a sell-off seen in all the
sectors. The panic will continue with the rise of cases and till no
clear progress on US stimulus package. The coming US election will also
add to more selling in the market."
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
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