Markets fall in early trade; turn volatile later
Benchmark stock indices fell in early trade Thursday in line with the weak trends in global markets amid the lack of any breakthrough in the US debt ceiling talks.
However, in retrospect, both indicators Sensex And elegant It became volatile and oscillated between highs and lows.
The 30-share BSE Sensex Index fell 75.1 points to 61,698.68 in early trade, after starting the day on a weak note. The NSE Nifty Index fell 31.05 points to 18,254.35 in preliminary trade.
But later, Sensex fell by 25.46 points at 61,748.32 and Nifty was trading down by 16.25 points to 18,270.05.
Of the Sensex group, Tata Motors, State Bank of India, Mahindra & Mahindra, HCL Technologies, Wipro, IndusInd Bank, HDFC, Infosys, Tata Steel, Axis Bank, Tata Consultancy Services and Reliance Industries were the main defaulters.
Among the winners were ITC, Nestle, Kotak Mahindra, Bharti Airtel, Power Grid and Larsen & Toubro.
In Asian markets, Seoul, Shanghai, and Hong Kong posted declines, while Tokyo traded in the green.
The US market closed lower on Wednesday.
“The uncertain stance of the Federal Reserve and the ongoing talks about the US debt ceiling are casting a shadow over the volatility in the markets,” said Prashanth Tapsi – Research Analyst, Senior Vice President (Research), Mehta Equities Limited.
The Sensex index fell 208.01 points, or 0.34 percent, to settle at 61,773.78 points on Wednesday. The Nifty Index fell by 62.60 points, or 0.34 percent, to close at 18,285.40 points.
“An important factor weighing on the markets in the near term is the lack of a breakthrough in the impasse of the US debt ceiling,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, Brent crude, the global benchmark for oil, fell 0.05 percent to $78.32 a barrel.
Foreign institutional investors (FIIs) were net buyers on Wednesday buying shares worth Rs 1,185.84 crore, according to exchange data.