FIRST TRADE: Sensex slips over 200 pts, Nifty tests 19,700 amid weak global cues; D-Mart down 3%
Stock market today: In the opening deals, the S&P BSE Sensex was trading 227 points, or 0.34 per cent lower at 66,056.13 levels while the NSEs Nifty was trading at 19,695.80, down 55 points, or 0.28 per cent.
Stock market today: The domestic equity market opened in the red on Monday, October 16, amid weak global cues. In the opening deals, the S&P BSE Sensex was trading 227 points, or 0.34 per cent lower at 66,056.13 levels while the NSE's Nifty was trading at 19,695.80, down 55 points, or 0.28 per cent.
Global stocks fell while the safe-haven dollar was firm on Monday, as investors nervously watched for whether escalating violence in Gaza would cause the conflict to spread beyond Israel and Hamas.
"Concerns regarding the spread of the Israel-Hamas conflict have triggered the sharp spike in Brent crude to above $90 and safe-haven buying has pushed gold to above $1900. The anxiety of the market is reflected in the CBOE VIX spiking above 19. From the geopolitical perspective, we are in uncharted territory, and, therefore, prudence demands that investors remain cautious," said Dr. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Holding cash would be a good strategy in this uncertain time. The cash component in the portfolio may be increased as a measure of caution. Also, this will enable investors to buy when there is a big dip in the market, and it is important to note that big dips can happen since valuations are high.
Paints, tyres, and aviation stocks will be under pressure from the rising price. HDFC Bank results today will be keenly watched by the market, the expert added.
Tata Motors (up over 1 per cent) was the biggest gainer on the index, followed by HCL Tech (up 0.96 per cent), and Tata Steel (up 0.80 per cent). On the other hand, Nestle India (down nearly 1.5 per cent) was the top loser on the index.
Buzzing stocks
Shares of Avenue Supermarts slipped as much as 4 per cent to Rs 3,771.70 apiece on the BSE. Texmaco Rail was trading over 6 per cent higher at Rs 142.30 on the BSE after the company reported an encouraging set of numbers for the September quarter.
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