Share Market on Tuesday: Investors also eyed the outcome of the US Federal Reserve meet, said experts.
The stock markets traded on cautious lines amid the ongoing third bi-monthly monetary policy review of the Reserve Bank of India. The S&P BSE Sensex opened at 37,534.95 but quickly slipped 102.88 points or 0.27 to 37,391.52 while the Nifty50 started at 11,311.05 to dip 16.60 points or 0.15 per cent to 11,302.95. In early morning trade, the top five laggards in the broader Nifty were Vedanta (down 2.49 per cent), Indiabulls Housing Finance (down 2.47 per cent), Hindustan Petroleum (down 2.26 per cent), Bharat Petroleum (down 1.96 per cent), and Tata Steel (down 1.63 per cent).
Investors also eyed the outcome of the US Federal Reserve meet, said experts. “The Federal Open Market Committee will embark on its two-day meeting today. Investors need to keep an eye on it very closely. Indian market will witness volatility today due to this,” said Ritesh Ashar – Chief Strategy Officer (CSO), Fundamental Research, KIFS Trade Capital.
Thirty Nifty stocks declined in trade. Barring Nifty IT and Nifty Realty, all indices traded with losses, led by a fall in metal stocks.
Asian share markets weakened, taking cues from the rout in global technology shares while the yen edged higher ahead of the Bank of Japan’s rate review, at which it could flag a shift away from its massive monetary stimulus, according to a report by news agency Reuters.
Japan’s Nikkei fell 0.5 per cent and South Korea’s Kospi index dipped 0.1 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan was mostly unchanged at 543.23 as were Australian shares.
Overnight in Wall Street, the Dow and the S&P 500 each lost 0.6 per cent and the Nasdaq skidded 1.4 per cent.
According to Monday’s provisional data from the National Stock Exchange (NSE), foreign portfolio investors sold net equities worth Rs 234.04 crore while the domestic institutional investors bought net shares of Rs 48.58 crore. (With Reuters inputs)