Benchmark indices opened lower on Monday with Nifty testing 11,350 levels on growing worries about an impending US recession.
Benchmark indices opened lower on Monday with Nifty testing 11,350 levels on growing worries about an impending US recession. Asian Markets also fell in early-morning deals as investors fled to the safety of bonds amid recession woes and sent global yields plunging.
At 9:20 am, the S&P BSE Sensex was trading at 37,841, down 323 points, while the broader NSE Nifty50 was ruling at 11,352, falling 104 points. Meanwhile, broader markets underperformed frontline indices with the Nifty MidCap slipping 1 percent and the Nifty Smallcap declining 1.3 percent.
IOC, NTPC, Coal India, HPCL and ONGC were the top gainers on the Nifty50, while Vedanta, Hindalco, Tata Motors, Indiabulls Housing Finance, and Yes Bank fell the most on the index.
All sectors were trading in the red in early morning deals. The Nifty Realty fell the most, down almost 2 percent, followed by the Nifty PSU Bank, Nifty Metal, Nifty Auto and Nifty Pharma.
The Nifty Bank fell over 1 percent, dragged by Bank of Baroda, Punjab National Bank, Federal Bank, State Bank of India, and Kotak Bank falling in the range of 1.5-2.5 percent.
Energy stocks were trading higher, after a downturn last week as oil prices fell on Monday. HPCL, IOC, and BPCL gained between 1.5-2.5 percent.
Shares of Jet Airways gained 1 percent on reports that the airline's board is meeting today to discuss a new resolution plan for the company. The SBI-led consortium may infuse Rs 1,500 crore into the airline, as per the new resolution plan, claimed the reports. Lenders reportedly want Naresh Goyal, his wife Anita Goyal and two directors to resign with immediate effect.
Tata Motors fell 1.5 percent after it said that the company will increase prices of its passenger vehicles range by up to Rs 25,000 from April on account of rising input costs and external economic conditions.
Globally, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6 percent to a one-week low. Japan’s Nikkei tumbled 2.9 percent, South Korea’s Kospi index declined 1.5 percent while Australian shares faltered 1.3 percent.
(With inputs from Reuters)