Stock Market India: Sensex down nearly 300 points
Indian equity benchmarks fell on Tuesday, driven by Chinese markets worried by Xi Jinping’s new leadership team, a more powerful party leadership would prioritize the state at the expense of the private sector.
While Indian stock markets showed modest gains early Tuesday, hopes the Federal Reserve could be nearing the end of its aggressive rate hike policy, Asian peers lower on Tuesday on weakness in Chinese stocks, and the yuan, could be limited. appeal of domestic shares
The 30-share BSE Sensex index ended 287.70 points or 0.48 per cent lower at 59,543.96, and the broader Nifty-50 index ended 74.40 points or 0.42 per cent lower at 17,656.35, ending a seven-day winning streak. Monday with profit in one hour Muhurta trading window.
On Monday, the equity benchmark posted significant gains, hitting a one-month high during Muhurta trading hours to mark the beginning of the Hindu Samvat year 2079.
Indian stock markets were closed for regular trading on Monday and were open for an hour – called the Muhurta trading session, and Wednesday would close profitably for Diwali celebrations.
Asian stocks tumbled on Tuesday in the early stages of the pandemic, with the yuan hitting a nearly 15-year low, as investors became concerned with the expansion power of President Xi Jinping.
MSCI’s broadest index of Asia-Pacific equities fell to its lowest level since April 2020, ahead of recovery efforts in battered Hong Kong tech companies.
Even though the Hang Seng Tech index was up 3 per cent in the afternoon, investors were relieved that it had fallen 10 per cent on Monday and nearly 50 per cent this year.
“A short-term technical rebound is the main factor for today’s rise,” Kenny Ng, a strategist at China Everbright Securities in Hong Kong, told Reuters. “(d) the cumulative decline of Hong Kong shares is deep.”
As investors analyzed a steady stream of business news ahead of policy meetings by the Federal Reserve and the European Central Bank, stocks in Europe rallied.
After Monday’s strong Wall Street performance, futures on the S&P 500 and Nasdaq 100 were discounted amid modest gains and losses, with mega-cap tech giants Alphabet, Microsoft, Amazon and Apple set to report this week.
Although more than half of S&P 500 businesses have already released their third-quarter earnings, investors are concerned that the effects of the slowing economy won’t be felt for some time.
“We’ve seen throughout the year that the equity risk premium has really narrowed,” Christian Müller-Glismann, managing director of portfolio strategy at Goldman Sachs, said on Bloomberg TV.
“It makes you more vulnerable if you despise on growth, cash flow, et cetera. For now, that hasn’t really happened, but all the leading indicators are pointing to risk in this direction.”
