Markets decline in early trade amid weak global trends
Benchmark indices Sensex and Nifty declined in early trade on Monday in line with weak global cues and caution ahead of the WPI inflation data to be announced later in the day.
The 30-share BSE benchmark Sensex declined 215.59 points to 81,917.53 in early trade. The NSE Nifty dipped 49.45 points to 24,718.85.
From the 30-share Sensex blue-chip pack, JSW Steel, Titan, Bharti Airtel, Nestle, Mahindra & Mahindra, Tata Consultancy Services, NTPC and Sun Pharma were the biggest laggards.
ITC, Reliance Industries, UltraTech Cement, Bajaj Finance, IndusInd Bank and Asian Paints were the gainers.
In Asian markets, Seoul, Tokyo and Hong Kong were trading lower while Shanghai quoted in the green.
Wall Street ended mostly lower on Friday.
“Stock markets in India are expected to remain cautious amid mixed global cues, as investors await the US Federal Reserve’s policy rate decision later this week,” Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 2,335.32 crore on Friday, according to exchange data.
“The excessive volatility witnessed on Friday is a reflection of the sharp differences in perceptions about the near-term market trend. While FIIs turning buyers in December, so far, after the relentless selling in the previous two months is positive, investors should not assume that the FIIs will continue to buy. Strong dollar and high bond yields in the US are headwinds for capital flows,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Global oil benchmark Brent crude dipped 0.31 per cent to USD 74.26 a barrel.
The BSE benchmark Sensex jumped 843.16 points or 1.04 per cent to settle at 82,133.12 on Friday. The Nifty climbed 219.60 points or 0.89 per cent to settle at 24,768.30.
