Sensex Today: LIVE Stock Updates: Sensex Gains 400 Points As IT, Banking Stocks Bleed; Nifty approaches 16,500; Tanla Platforms drops 17% on poor first-quarter show
“Investors will likely be in a wait-and-see mode as all eyes will be on the US Federal Reserve’s rate decision,” said Prashanth Tapse, research analyst at Mehta Equities.
Asian peers were also on hot coals ahead of the Fed’s likely 75 basis point rate hike, while a profit warning from US retailer Walmart dampened sentiment.
“Following Walmart’s comments on inflation and growth, market jitters increased ahead of the Fed policy meeting, and this trickled down to the domestic market despite a better-than-expected earnings season,” he said. Aishvarya Dadheech, fund manager at Ambit Asset Management.
Meanwhile, after strong outflows of foreign capital every month since November, Indian equities received net inflows of $52.95 million this month through Monday. For the month so far, the Nifty and Sensex are up around 4.5% each.
The Nifty IT index slid 2.3% and was the worst performer among the sub-indices, with IT major Infosys falling 3%.
A 3.7% rise in financial services firm Bajaj Finserv helped reduce losses on the Nifty 50 as it plans to issue free shares and split its shares.
“The dark cloud on the horizon of the global economy is the threat of an impending US recession impacting global economic growth. The jury is out yet on whether the US enters a recession or not. But a slowdown in global growth looks inevitable.Wall Mart’s earnings warning issued yesterday is an indication of tough days ahead for corporate earnings.Europe is the world’s weakest geographic space and China is struggling,” says Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Even though the Indian economy is now resilient, slowing global growth will also impact India, he added.
“This means, from a fundamental perspective, there is a limit to the upside of the market. Nifty’s 1400-point rally from its June lows has again stretched market valuations. As a result, FIIs could again turn sellers into rallies,” he said.
Nifty 50 components Bajaj Auto, Asian Paints and Larsen & Toubro will release their results later today.