Benchmark indices have turned weak after making a flat opening mirroring weakness among global peers.
On Thursday, suffered steep losses on geopolitical concerns after Indian Army in a press conference yesterday revealed that India conducted surgical strikes against terror launchpads inside Pakistan occupied Kashmir late last night.
By 9:23 am, the S&P BSE Sensex was down 82 points at 27,740 and the Nifty50 slipped 24 points at 8,567. Broader markets are outperforming the benchmark indices- BSE Midcap index has slipped 0.2% whereas the Smallcap index is up over 0.2%.
“After moving up by almost 30% in last six months, market had been looking for some reasons to take a correction. On economic parameters, no negatives had been visible so market seems to have taken recourse to a non-economic reason to take a correction” said Kunj Bansal, ED & CIO, Centrum Wealth Management.”
He further adds, “Yesterday’s correction will be followed by RBI’s monetary policy review on Tuesday, October 4. Taking these two events together, we can witness some kind of consolidation in the market before it takes a fresh direction. Post these events, September quarter results are likely to be good and we should see market sentiment improving accordingly.”
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 3413.37 crore yesterday as per provisional data released by the stock exchanges.
On the macro-economic front, the Reserve Bank of India (RBI) on Thursday chided banks for publishing photos of defaulters and guarantors in newspapers even as they may or may not be categorised as “wilful defaulters” going by RBI methodology.
Ahead of the first interest rate review since he took over as RBI Governor, Urjit Patel on Thursday met Finance Minister Arun Jaitley. It is deemed to be customary pre-monetary policy meeting with the Finance Minister.
Asian stocks followed Wall Street lower in early trade on Friday, while oil prices held close to the highest level in almost a month on optimism over an OPEC plan to curb output.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, on track for a 0.4% drop for the week. It is poised for a 2.2% gain in September, and a 9.5% jump in the third quarter.
Japan's Nikkei retreated 1.5% after sluggish consumption data. It is down 1.7% for the month, but set to end the quarter 5.7% higher.
Wall Street lost about 1% as Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender.
Tata Steel plans to add 6 million tonne steel output to its existing 13 mt capacity across two facilities at Jamshedpur and Kalinganagar through brownfield expansion over the next few years.
IDFC Bank, the newest lender in the country that transformed itself into a bank, is all set to complete its one year journey on October 1. In the past few months, the bank has aggressively turned its focus on retail and this is going to be in spotlight for the next few years.
With Reuters inputs