Sensex, Nifty Log Worst Single-Day Fall Of 2019
Experts Speak: Here's Why Markets Declined Sharply Today
Rate Cut Was Already Factored In: Indianivesh
Indian equity indices registered their biggest fall of this year as investors had already factored the “positives” of a rate cut. That’s according to Dharmesh Kant, head of research at Indianivesh Securities Ltd, in a comment to Bloomberg.
The focus now shifts to the monsoon and the government budget to see what steps it takes to help improve investor sentiment
It’s A Surprise! : IIFL
Hardrien Mendonca, senior technical analyst at IIFL said he was “surprised” to witness a 190-point decline in the Nifty Index. “There's going to be more consolidation and it may take more time for prices to move higher.”
Investors Assessing Liquidity Issues: Angel Broking
The markets declined as investors were still trying to “decipher” the problems associated with cash crunch in the Indian business environment. That’s according to Mayuresh Joshi, fund manager at Angel Broking.
“Steps that the central bank takes over the next few weeks to address the NBFC issues will be critical,” said Joshi adding that demand slowdown and global growth concerns are also influencing market sentiments.
Closing Bell: Sensex, Nifty Register Biggest Single-Day Fall This Year
Indian equity benchmarks suffered their worst single-day in 2019 after corporate credit rating downgrades dampened sentiment even as the central bank cut its key policy rate as expected.
“Investors were worried after DHFL missed interest payments on non-convertible debentures,” Avinash Gorakshakar, Research Head, Joindre Capital Services told BloombergQuint. “They expect that this could have a contagion effect on public sector banks as well as other non banking finance companies leading to increased non performing assets on their books.
The S&P BSE Sensex slid 1.38 percent to 39,529 while the NSE Nifty 50 index dropped 1.48 percent to 11,843. Both the indices fell the most since Dec. 2018.
The advance decline too was in favour of the sellers at 4:1 on the NSE. All sectoral indices compiled by the bourse declined led by the Nifty PSU Bank index.
Difficult For Nifty To Rally Past 12,000 In The Short Term, Says Gautam Shah
Gautam Shah of JM Financials said the benchmarks are likely to go through a 'patch of correction' over the next four to six weeks after their run to record highs.
India cannot continue to outperform at a time when other markets are seeing a downturn, Shah said. “The market is ignoring the negatives,” he told BloombergQuint in an interview adding, "It's difficult to see Nifty rally past 12,000 in short-term."
Meanwhile, here are the top three sectors Gautam Shah is betting on.
Axis Bank Drops After Block Deal
Shares of the private bank fell as much as 2.1 percent to Rs 805.80 each.
Around 10.6 lakh shares changed hands in a block deal, according to Bloomberg data. Buyers and sellers were not known immediately.
Europe Market Check: Equities Advance
European equities advance as investors switched to defensive assets such as utilities and healthcare shares amid uncertainty associated with tariff talks.