The week begins on a bearish tone with BSE Sensex once again scrapping away 52,000-mark and Nifty50 sliding down even below 15,600 on Monday. Indian markets were under steep selling pressure tracking weak global cues as investors contemplate the surprise hawkish shift last week by the U.S. Federal Reserve and also expect raising of benchmark interest rates to begin from early next year.
Back at home, all sectoral indices were trading in the red with auto, banking, financials, IT and metal index taking the worst hit. India's volatility index climbed by more than 9%.
Higher than normal volatility is expected as expiry derivative contracts scheduled for this Thursday will add to price swings.
At around 09.41 AM, Sensex was trading at 52,007.30 down by 337.15 points or 0.64%. The index has dived to an intraday low of 51,740.19.
Meantime, Nifty 50 was performing at 15,578 lower by 105.35 points or 0.67%. The index has nosedived to an intraday low of 15,505.65 in early deals.
In broader markets, all indices tumbled between 0.3-1% except for India's VIX.
In terms of sectoral indices, Nifty Auto plunged by 1.3%, while the Nifty Bank, Nifty Financial Services, Nifty IT and Nifty Pharma slipped by nearly 1% each.
Gainers on NSE were - NTPC surging 2.7% followed by Adani Ports soaring 2.1%, HUL advancing by 1.3%. ONGC and Asian Paint also jumped more than 0.5% each.
Losers on NSE were - UPL diving nearly 3%, Wipro plummeting 2.05%. Whereas M&M and Tata Motors fell by 1.8% each and Hindalco shed 1.6%.
Companies that are set to announce their Q4 result today and will be in focus are - Oil India, Bharat Dynamics, Info Edge, Jaiprakash Associates, Aban Offshore, Deccan Polypacks, GPT Infraprojects, HBL Power Systems, Hindusthan National Glass, MM Forgings, Pokarna, Rico Auto Industries, Sumeet Industries, Talbros Engineering, TCNS Clothing, and VST Tillers Tractors.
On the global front, Asian stocks were in a sharp free fall with Japan's Nikkei 225 underperforming the most with more than 1,100 points drop. Hong Kong's Hang Seng contracted by nearly 400 points. While Australia's ASX and South Korea's KOSPI dipped by 1.1% and 1.8% respectively. China's Shanghai Composite was marginally down.
Asian stocks mimicked the downfall of US indices as the markets are now in discovery mode for rising in rates at end of 2022 & will find a median price sooner as a wall of liquidity remains for the next 18 months. Notably, Chinese stocks are in focus amid the strong number of the population vaccinated and recovery in economic activity.
Last Friday, US stocks nosedived a double whammy of options expiry adds to weak sentiment as Dow Jones declined 500 points to end the worst week since February. Nasdaq Composite also witnessed weakness despite being the outperformer this week. Bond yields slid to the lowest in over three months at 1.42%, while Gold prices see edge higher against stronger dollar.
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