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Markets fall in early trade after 8 days of rally

Benchmark indices declined in initial trade on April 13 after eight days of rally amid weak trends in the U.S. equity markets triggered by fresh concerns over recession.

Benchmark indices declined in initial trade on April 13 after eight days of rally amid weak trends in the U.S. equity markets triggered by fresh concerns over recession.
| Photo Credit: PTI

Benchmark indices declined in initial trade on April 13 after eight days of rally amid weak trends in the U.S. equity markets triggered by fresh concerns over recession.

IT counters took a beating in the morning trade which resulted in weak trend in the benchmark indices.

The 30-share BSE Sensex fell 164.66 points to 60,228.11 in early trade. The broader NSE Nifty declined 44.45 points to 17,767.95.

Among the Sensex firms, Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, Wipro, NTPC, Kotak Mahindra Bank and Tata Steel were among the major laggards.

The country’s largest IT services exporter TCS on Wednesday reported a 14.8% increase in March quarter net profit at ₹11,392 crore but flagged worries from its key market of North America.

Power Grid, Bajaj Finserv, Hindustan Unilever, Nestle, State Bank of India and Maruti were among the gainers.

In Asian markets, Seoul, Japan and Shanghai were trading in the green, while Hong Kong quoted lower.

The U.S. markets had ended lower on Wednesday.

“Markets may drift lower in early April 13 trade after the key U.S. indices ended lower overnight which resulted in Asian gauges trading mixed. While yesterday’s key economic readings such as moderating inflation and improved IIP growth are positive developments, the markets could take a pause after witnessing continuous uptick over the past few sessions.

“Also, recession concerns grew after the U.S. FOMC minutes showed that Fed expects banking turmoil to cause a recession while reigniting inflation fears are a spike in oil prices to $83 a barrel,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said in his pre-market opening quote.

Retail inflation in March fell to a 15-month low of 5.66% and came back to the Reserve Bank’s comfort level of 6%, as prices of vegetables and protein-rich items eased, showed government data released on Wednesday.

India’s industrial production growth rose marginally to 5.6% in February from 5.5% in January 2023, mainly due to good performance of the power, mining and manufacturing sectors, according to official data released on April 12.

Meanwhile, global oil benchmark Brent crude dipped 0.23% to $87.14 per barrel.

“U.S. stock finished lower in choppy trade on April 12 after minutes from the Federal Reserve’s March policy meeting showed policymakers agreed that the stress in the banking sector would slow U.S. economic growth.

“Investors also assessed a March consumer price index report which shows inflation slowing, though still elevated. Meanwhile, Fed staff projected that the economy may enter a mild recession later this year before recovering over the next two years, according to the minutes,” said Deepak Jasani, Head of Retail Research, HDFC securities.

Foreign Portfolio Investors (FPIs) continued their buying activity as they further bought equities worth ₹1,907.95 crore on Wednesday, according to exchange data.

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