sensex today: Sensex starts July on a negative note, loses 800 points; Nifty50 below 15,600
Shares also fell as the rupiah fell below 79 against the dollar, raising fears of an intensification of foreign outflows. Asian markets were mostly trading in the red, following a weak close in Wall Street stocks overnight as investors anticipated a global slowdown ahead. Additionally, higher fuel export duties weighed on shares of the heavyweight RIL index, which fell more than 8%.
As of 10:05 am, the BSE Sensex was trading 775 points or 1.46% lower at 52,244. Nifty50 was trading at 15,567, down 213 points or 1.35%.
The data showed that outflows of foreign equities crossed the Rs 50,000 crore mark in June, taking year-to-date outflows to Rs 2,17,358 crore. A weakening rupee makes investing in domestic stocks unattractive to foreign investors.
Continued Indian equity REIT selling proves to be the highest selling spree since the 2008 Global Financial Crisis (GFC) with cumulative 12-month secondary market REIT selling of $53 billion from $28 billion of dollars during the GFC, such as by forecast flow data from stock exchanges,
said in a note.
Among Sensex shares,
fell 2.36% to Rs 1,896.70 after the government increased import duty on gold to 12.5% from 7.5% previously. Dr Reddy’s Labs was down 2.21% at Rs 4,306.45. HDFC, , and fell more than 1% each. SBI, Reliance Industries, L&T, and also fell by as much as 1%.
, which rose by 1.26% to reach Rs 2,731.55. , ITC, TechM and rose slightly to 0.35%.
VK Vijayakumar, Chief Investment Strategist at
noted that the first half of 2022 saw US indices plunge 21%, which was the worst since 1970.
“This weakness also reflected declines in other markets. But it’s important to appreciate that India outperformed with Nifty only correcting around 9%. With the economy showing signs of ‘gradual recovery’ despite the global headwinds “(RBI), the outlook for the second half looks better for the markets,” Vijayakumar said.
“Leading indicators suggest an improving outlook for banking, IT, telecommunications and automotive. Short-term stock price movements in July will be anticipated by better-than-expected second-quarter results in these segments. Metals stocks should bottom out as they absorb the poor first quarter results,” Vijayakumar said.
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