Sensex Sheds Over 400 Points, Financial Stocks Trade Weak

By Administrator_ India

Capital Sands

The domestic stock markets have opened in the red, after closing at record highs on Friday, due to the emergence of profit-booking at high levels. At 9:30 am, the BSE Sensex was trading at 52,046.50, lower by 444.15 points or 0.88 per cent and the NSE Nifty was at 15,631.54, down 169.50 points or 1.5 per cent. The broader markets received a hammering in early trading, with the BSE Midcap index and BSE Smallcap index losing 2 percent and 1.6 percent respectively. The selling was so broad-based that all the sectoral indices on the BSE were trading in the red, and as many as 28 of the 30 Sensex index stocks were trading in the negative territory.

Asian markets were higher, with multiple major markets in the region closed for holidays. In Japan, Nikkei 225 rose 0.45 per cent and Topix index gained 0.25 per cent

U.S. stocks closed modestly higher at the end of a torpid week marked with few market-moving catalysts and persistent concerns over whether current inflation spikes could linger and cause the U.S. Federal Reserve to tighten its dovish policy sooner than expected.

The Dow Jones rose 0.04 percent, the S&P 500 gained 0.19 percent and Nasdaq Composite added 0.35 percent.

Meanwhile, oil prices held near multi-year highs on Monday, underpinned by an improved outlook for demand as increased Covid-19 vaccinations help lift travel curbs.

Brent crude was up 14 cents, or 0.2 percent, at $72.83, and U.S West Texas Intermediate was also up 14 cents, or 0.2 percent, at $71.05 a barrel, reaching the highest since October 2018.

In the primary market, the Shyam Metalics IPO and Sona Comstar IPO will open for subscription on Monday.

On the earnings front, Coal India, IDFC, Indian Overseas Bank, and Aditya Consumer will declare their Q4 numbers during the day.

On the stock-specific front, financial stocks are having a rough ride, continuing from their weakness for the third week in a row. SBI, Bajaj Finance, IndusInd Bank, Bajaj Finserv, ICICI Bank, HDFC, and Axis Bank have shed 1-2 percent each on the BSE.

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