The domestic benchmark indices opened on a lackluster note on Thursday, taking cues from the global market. The uncertainty surrounding the covid situation in China, the risk of global recession and the possibility of further monetary tightening are fueling the nervousness in the market.
The BSE Sensex started trading around 300 points lower to 60,628 points from the previous close, while NSE Nifty-50 opened 80 points lower to 18,045 points and Nifty Bank began trading around 150 points down to 42,684 points. All the sectoral indices followed the downward path except Nifty Pharma.
As of 1:35 PM, Sensex is trading at 60,669 points, down 241 points or 0.4%, while Nifty is trading at 18,041 points, down almost 100 points and Nifty Bank is also trading down almost 100 points or 0.2 to 42,747 points.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "There is weakness in global markets on renewed Covid fears on top of the concerns surrounding the US economy tipping into recession. These concerns are likely to keep the markets subdued and, therefore, the Nifty may consolidate around the present levels with a downward bias."
"The next trigger for the markets will come from the Q3 results starting from January 12th. Financials, capital goods and construction-related segments are likely to post good Q3 numbers and, therefore, investors may closely watch these segments." He added.
Commenting on the Nifty outlook Anand James, Chief Market Strategist at Geojit Financial Services, said, "We are inclined to expect consolidation inside 18,040-1,7940 rather than an outright collapse. Slippage past this band would force us to reconsider 17,670, while the prospects of 18,400 would be up, should slippages manage to be contained within the 18,040-17,940 band."
Wall Street stocks fell on Wednesday, making the Santa Claus rally elusive. Dow declined 365 points or 1.1% while S&P 500 fell 46 points or 1.2% and the tech-heavy Nasdaq lost 140 points or 1.35%
