FIRST TRADE: Indices slip amid weak global stocks; Sensex down nearly 1,300 pts, Nifty below 24,300
Stock market today: Last seen, Sensex was down 1304.32 points or 1.61 per cent at 79,677.63 and Nifty slipped 386.8 points or 1.56 per cent at 24,330.9.
Stock market today: Indian share market on Monday, August 5, started the session lower amid weakness in global stocks. Last seen, Sensex was down 1304.32 points or 1.61 per cent at 79,677.63 and Nifty slipped 386.8 points or 1.56 per cent at 24,330.9.
"Valuations in India are driven mainly by sustained liquidity flows, continue to be high, particularly in the mid and small caps segments. The overvalued segments of the market like defence and railways are likely to come under pressure. The buy-on-dips strategy which has worked well in this bull run, is likely to be threatened now. Investors need not rush to buy in this correction. Wait for the market to stabilise," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Dr. V K Vijayakumar added the rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in US job creation in July and the sharp rise in US unemployment rate to 4.3 per cent. Geopolitical tensions in the Middle East also are a contributing factor. Another significant factor is the unwinding of the Yen carry trade which is bleeding the Japanese market. The crash in Nikkei by above four per cent this morning is an indicator of the crisis in the Japanese market.
In the broader market, Nifty Midcap 100 and Smallcap 100 traded in firm red. Last seen, high-beta Nifty Bank was up 1.68 per cent at 50,489.55.
BUZZING STOCKS
SBI shares were down over 3 per cent after the company reported weak Q1 results.
Titan shares were up over 2 per cent after the company posted mixed Q1 results.
Divi's Laboratories shares were down over 2 per cent after the company posted weak Q1 results.
LIC Housing shares were down over 4 per cent after the company posted very weak Q1 numbers.
Delhivery shares were down over 1 per cent despite the company reporting profit from loss year-on-year.
CDSL shares were down over 3 per cent despite the company reporting good Q1 numbers.
JK Tyre shares were down over 3 per cent despite the company posting operationally strong numbers.
Amara Raja Energy & Mobility shares were down over 3 per cent despite company posting good Q1 numbers.
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