Indian equities amid across-the-board sell-off fell sharply after hitting record highs. At the last count, Sensex was down 0.94 per cent or 755.27 points at 79,599.4, while the Nifty benchmark traded with a cut of 0.9 per cent or 217.4 points at 24,215.8. Meanwhile, Bank Nifty was last down by 0.8 per cent and at day’s low it hit levels of 52,077.9.

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Here are the likely factors fuelling losses in the markets today:

No clear indications of rate cut in Fed Chair Jerome Powell’s testimony:

Prashanth Tapse, Senior VP (Research), Mehta Equities pointed out that the Federal Reserve Chairman Jerome Powell insists that a rate cut is not appropriate until there is greater confidence that inflation is moving sustainably toward 2 per cent. Though the policymaker acknowledged some cooling in the economy, he didn't give any clear signs on when the US Federal Bank can resort to rate cuts. 

Recent inflation readings have shown modest progress, and more positive data could strengthen the case for a rate cut, possibly as soon as September, with up to three cuts anticipated this year, added Tapse.,

Across-the-board sell-off:

Markets amid across-the-board sell-off cracked sharply after hitting fresh highs on both the headline indices. Of the 16 main sectoral indices, auto and metal stocks led the decline with a crack of over 2 per cent, followed by PSU Bank and IT stocks.

Broader markets:

Broader markets took a sharp hit and cracked up to 2 per cent, dragged by stocks like Linde India, Bharat Dynamics, Cochin Shipyard and Hindustan Copper among others.

Technicals:

Anand James, Chief Market Strategist, Geojit Financial Services on the Nifty outlook said upsides fizzled off towards close yesterday, and hence we will watch how 24385 holds off, in order to re attempt the upswings aiming 24720-800, with 24500 as an interim challenge. Inability to float above 24385 could bring in volatility, but upside possibilities will remain as long as dips do not stretch beyond 24260.