Indian stocks were shaky at opening Friday.
Nifty and Sensex have continued to decline for the fifth session in a row, mainly due to falls in FMCG and banking stocks.
The Sensex was down 16 of 30 stocks.
Early trade saw the Sensex fall 204.20, or 0.26% to 79.013.85, and the Nifty down 0.22%, at 23,899.30.
After the US Fed’s hawkish signal, market sentiment remained negatively negative.
The sale of foreign institutional investors has also continued.
The FIIs have sold Indian equities worth around Rs4224 crores (about PS394.7 millions).
In the last two weeks, FIIs sold Indian stocks worth approximately Rs 14,287 crore.
India Stock Markets Focus
Accenture’s positive quarterly revenues and revised guidance fueled the Nifty IT index early gains.
TCS, Infosys Wipro and Coforge, IT giants, led the rally.
Wipro has also achieved a record-breaking high.
The Nifty gained the most in Dr Reddy’s Laboratories which rose by close to 3 %.
Nomura, a global brokerage firm, upgraded the shares of this pharma giant earlier in the week.
Titan, NTPC and Powergrid were the others.
Asian markets are on the edge
Asian stocks traded with caution on Friday, as investors looked forward to US inflation data in order to get a sense of monetary policy directions.
Hong Kong’s Hang Seng rose 0.16%, and the Shanghai Composite gained 0.5%.
The People’s Bank of China maintained its prime rates for one-year loans at 3,1%, and those of five years at 3,6%. This was contrary to expectations of rate cuts.
The markets are also waiting for Hong Kong to announce its inflation rate and China, which could be announcing the one-year Medium Term Lending Facility Rate (MLF).
After giving up gains early, the Nikkei index traded at a flat level. Meanwhile, the yen was hovering near its lowest point in five months amid speculations that the Bank of Japan would not be raising rates anytime soon.
As the won fell to its lowest level in over 15 years, technology stocks were under pressure. The Kospi dropped by more than 1%.
S&P/ASX 200 fell 1.3% due to losses among stocks linked to commodities.
US stock markets finish flat, reversing gains made earlier
US stock markets showed signs of early recovery Thursday after Wednesday’s steep sell-off caused by the Fed’s hawkish outlook.
In the end, however, the gains were mostly flat.
Dow Jones Industrial Average halted its 10-day loss streak by gaining 15.37 points (0.1%) to 42,342.24.
The Nasdaq Composite fell 19.92 points (0.1%), to 19,372.77. And the S&P500 dipped 5.08 points (0.1%), to 5,867.08.
Investors were looking for bargains after Wednesday’s Dow-driven losses that drove it to an all-time low.
The upcoming US Personal Consumption Expenditures data is being closely watched by market watchers. This information will play a key role in guiding the bond yields of investors and shaping their sentiment.
In the short term, a drop in yields on 10-year bonds below 4.50% may provide some relief for markets.
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The post Indian stocks extend losses for fifth consecutive day: Nifty drops below 23,850 could be updated as new information unfolds.
