MUMBAI, India – Nifty and Sensex, the equity benchmarks in India, started Thursday on a volatile note as negative sentiments from the global market and the faint domestic economic data keep investors on the edge of their seats.
The bigger National Stock Exchange (NSE), Nifty, decreased by 0.28 percent, shedding about 33.20 points to lower 11,807.25 points. The Bombay Stock Exchange (BSE), Sensex, also declined up to 3.34% early on Thursday. Top losers in the BSE included Tata Motors, Tata Steel, SBI, HUL, ONGC, IndusInd Bank, and Bharti Airtel.
On the other hand, top gainers included the Yes Bank, Maruti, Asian Paints, and Infusis, which gained up to 2.13%. The end of trading on Wednesday settled Nifty to a low 0.61%, shedding 73 points and dropping to 11,840.45. Sensex also settled to a 0.57% decline, closing at 40,116.06.
During the previous trading session, shares sold valuing at Rs 890.03 crore were made by domestic institutional investors, while foreign institutional investors bought shares valuing to Rs 584. 92 crore.
Based on the recent drop in market shares, traders said that the main cause for such sentiments is investors feeling on edge due to negative global cues and weak macro data. Consumer inflation based on retail price spiked up to 4.62%, a record high after almost 16 months, in October. The inflation spiked on more expensive food items, which reduced the headway for cutting rates in the monetary policy by the RBI, which has a deadline for next month.
According to the Head of Research in Geojit Financial Services, Vinod Nair, the weak economic numbers, in particular, has caused the entire market to be watchful ad vigilant.
Further, the expectation for the GDP data, which is set to be released before the month ends, has also worsened up to 5%. It was noted in the 1st quarter for this year, Nair said. He also continued saying that the central bank seemingly not in any hurry to modify its monetary policy anytime soon adds to these factors.
Market investors are waiting for a much optimistic turn in inflation numbers, which is expected to be released later today.
On the global market, Nikkei and Hang Seng also traded lower to 0.92% as the political issues and protests in Hong Kong continue. On the other hand, Kospi and Shanghai Composite index was coming out a bit higher. The industrial output of China also inched lower than what was predicted in October.
On Wall Street, the stock exchanges on Wednesday ended on a conflicting note amid the statement from Jerome Powell, Federal Reserve chief, stating that the US economy is expected to gain growth momentum but will still face risks from trade disputes and global slowdown.