Global cues dent equities; metal stocks fall
Mumbai, October 1, 2021
Weak global cues along with profit booking dented India's key equity indices -- S&P BSE Sensex and NSE Nifty50 -- for the fourth consecutive session on Friday.
In the day's trade, the market struggled at lower levels after a gap down opening. It mildly recovered towards the end of the day.
Globally, Asian equities traded sharply lower as risk sentiment soured amid growing worries that inflation may persist even after global growth has peaked.
European equities started the day on a lower note, as concerns about economic stagflation and US monetary policy combined with surging energy prices and risks of a slowdown in China's industrial, property sectors could prolong a downturn in global stock markets.
On the domestic front, metals and consumer durables indices rose the most, whereas realty, telecom and IT indices fell the most.
The 30-scrip S&P BSE Sensex closed at 58,765.58 points, down 360.78 points or 0.61 per cent. The Sensex opened at 58,889.77 points from its previous close of 59,126.36 points.
Besides, the NSE Nifty50 closed at 17,532.05 points, down by 86.10 points or 0.49 per cent.
"On daily charts, the Nifty has formed a 'doji' like pattern after a downgap suggesting a possible halt to the fall temporarily," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"A range of 17,355-17,452 could be an important support for the Nifty while 17,620 could act as a resistance. 17,792 on the upside seems difficult to breach in the near term," he added.
According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services: "Equity markets started the month of October on a negative note, reflecting weak global sentiments.
"On the macro front, September auto sales numbers came in lower than expectations. The government on the other hand is exploring banning of diesel generators in the residential areas as it aspires to move towards cleaner energy."
Vinod Nair, Head of Research at Geojit Financial Services, said: "Despite favourable growth in India's core sector output, which accelerated by 11.6 per cent in August from 9.9 per cent in July, domestic indices were in the red, reflecting weak global cues and losses in heavyweights.
"High Eurozone inflation at 3.4 per cent in September slowed global growth and the existing Chinese crisis bolstered global sell-off. The auto sector is holding on despite weak sales, in anticipation of festival demand, as numbers from major manufacturers showed fall in September sales mainly due to semiconductor supply shortage."