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Amid volatility, Indian equity indices end in red
Mumbai, October 30, 2020
Volatility flared up in the Indian equities market as concerns grew over the sustenance of global growth due to the rise of Covid-19 infections.
Besides, the upcoming US elections, as well as local political developments and absence of any new stimulus measures, hit the market sentiment hard.
Globally, European shares erased declines after a string of positive earnings reports, as data point released on Friday showed rebounding growth in the third quarter for France.
Back home, volumes on the NSE were in line with the recent averages.
However, auto, FMCG and banking indices ended in the red while other indices ended in the positive with realty, media and metals gaining the most.
Consequently, the Nifty50 on the National Stock Exchange closed at 11,642.40, lower by 28.40 points, or 0.24 per cent, from its previous close.
The Sensex closed at 39,614.07 points, lower by 135.78 points, or 0.34 per cent, from its previous close of 39,749.85.
"Nifty is tagging the western markets directionally. Hence, sentiments need to stabilise in the US, and Europe. Improvement in advance decline ratio on Friday is encouraging. While Nifty made a new intraday low, it closed only marginally lower compared to Thursday," said Deepak Jasani, Head of Retail Research at HDFC Securities.
Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian market is moving in tandem with global trends which is displaying weakness as a new round of coronavirus lockdown is weighing on the future growth and outlook."
"Indian rally was supported by good Q2 results and economic data. The sustenance of economic data will be difficult in the next quarter due to restrictions affecting world growth, global uncertainties over the US presidential election and timing of stimulus."