August 8, 2022
Share Market: The fall in the stock market, Sensex and Nifty slipped

Share Market Update Today: The domestic markets opened with a slippery opening on the BSE this morning amid weak global cues. Frontline index Nifty-50 slipped 50 points from 17,300 level, while S&P BSE Sensex fell over 150 points to 57,929 level. Similarly, broader markets were also under pressure with Nifty Midcap 100 and Nifty Smallcap 100 falling 0.2 per cent and 0.1 per cent respectively.

The Nifty Metal Index fell more than 1 per cent in trading. However, Nifty FMCG and Nifty Media indices opened with marginal gains. Among individual stocks, ITC shares hit a 52-week high at Rs 314 per share. ITC Group reported a 33.9 per cent year-on-year jump in consolidated net profit at Rs 4,389.7 crore. Besides, its shares have risen up to 5 per cent after food aggregator Zomato made a consolidated loss.

According to market analysts, the sharp fall in the US 10-year bond yield to 2.57 per cent from its recent high of 3.27 per cent, the market message is that the Fed is nearing the end of its tight cycle with only another big hike in September . And after that the terminal rate will be around 3.5 per cent. This sentiment has facilitated a rally in the global markets and India is emerging as one of the best performers.

There is a general consensus that India will be the fastest growing large economy in the world this year and will be least affected by the global growth slowdown. Now FIIs have returned to the Indian markets, who have now become frequent buyers. Nifty’s rally of 2100 points from June lows along with rising valuations has pushed the market into overbought territory. The market is likely to strengthen in the near future. Capital goods and auto (PV and CV segments) are in a strong position.

Now all eyes will be on RBI MPC interest rate decision on August 5. The RBI is expected to increase the repo rates by 50 basis points to 5.4 per cent from the current 4.9 per cent. The market will also keep an eye on auto sales data after July, as it will be a possible indication of the health of the macro-economy. Apart from this, there will also be an eye on the telecom sector where the 5G auction era has been dominating.

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