Sensex Today: Indian shares opened marginally down on Thursday, dragged by declines in tech and auto stocks, amid fears that the strong US retail sales data could push the Federal Reserve to sustain its aggressive rate hike stance. After exhibited lacklustre movement for a major part of the trading day on Thursday, the key benchmark indices weakened in late trade owing to selling pressure in auto, IT and HDFC twins.
The S&P BSE Sensex, which, touched a high of 62,051 in morning deals, dropped to a low of 61,643 –down over 400 points from the day’s high. The Sensex finally ended 230 points lower at 61,751.
The NSE Nifty 50, from a high of 18,418 fell to a low of 18,313, and eventually settled 66 points lower at 18,344.
Among individual stocks, shares of Paytm declined over 10 per cent after nearly 6 per cent equity of the company changed hands on the exchange via block deals.
Besides, shares of L&T Infotech (LTI) and Mindtree were down 3 per cent each after the companies fixed November 24, 2022 as the record date to determine eligibility of shareholders for allotment of merger entitiy shares.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The fact that Sensex and Nifty are at record closing highs tells us that the Buy on Dips strategy has worked well in this market. Therefore, this strategy can be expected to work, going forward, too. High-quality stocks in banking, IT, telecom, and capital goods form the backbone of this large-cap-driven rally. Dips in this segment are likely to get bought. India is the only large market that crossed previous record highs. This will stand the market in good stead. Even though the mother market US has turned a bit weak, the sustained fall in US bond yields is positive for emerging markets like India. The mid-and small-cap indices are likely to remain weak.”
Global Cues
Asian stocks were mixed on Thursday while the U.S. dollar stabilized and Treasury yields remained depressed as investors tried to assess the outlook for Federal Reserve policy following stronger-than-expected retail sales data.
Tokyo’s key Nikkei index opened lower on Thursday after Wall Street shares slumped, as a major US retailer warned of a softer holiday season. The benchmark Nikkei 225 index dipped 0.20 per cent, or 56.99 points, to 27,971.31 at the open, but the broader Topix index edged up 0.04 per cent, or 0.78 points, to 1,964.07.
Wall Street’s main indexes ended lower on Wednesday as a grim outlook from Target spurred fresh concerns about retailers heading into the crucial holiday season, while semiconductor shares slid after Micron’s supply cut.
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