The benchmark indices started trading on a negative note amid unsupportive global cues on Monday morning. Both headline indices fell as much as 0.7 per cent in early deals. The Sensex falls 409 points to 55,360.3 after a negative opening and the Nifty50 slides to as low as 16,466.8, down 117.6 points from its previous close.
M&M, Axis Bank, IndusInd Bank, Reliance, NTPC, and Ultratech Cement were the top gainers on the Sensex, while Wipro, HUL, Tech M, Infosys, TCS and Tata Steel was the top laggards.
On the flip side, IT stocks led losses on sensex, Wipro, Tech M, Infosys, TCS and HCL Tech dropped 1-2 per cent. BPCL, Britannia, Coal India, Hindalco, Tata Steel, HUL and Asian Paints were the other laggards across the two benchmarks.
The broader markets also opened in red. The BSE MidCap and SmallCap indices were up to 0.2 per cent lower.
Sectorally, Nifty IT, Media, Metals, PSBs and Realty indices suffered the maxmium losses, each down over 1 per cent. Other pockets were also in red.
Dr VK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The market mood has turned a bit cautious with better than expected US jobs data ( 3.90 lakh jobs) in May. This good economic news is negative from the market perspective since it means the Fed is likely to tighten aggressively without bothering about a possible recession. For India elevated crude prices and a $23 billion trade deficit in May are areas of concern. Even though FPI selling has come down in early June they are likely to sell more at higher levels. The dollar index above 102 is negative for EM equity. The positive factor for India is the DIIs and retail investors consistently buying the dips.”
Wall Street’s three major stock indexes ended lower on Friday after a solid jobs report ate into hopes for a pause in the Federal Reserve’s aggressive policy-tightening which is needed to cool decades-high inflation. The Dow Jones Industrial Average fell 348.58 points, or 1.05 per cent, to 32,899.7, the S&P 500 lost 68.28 points, or 1.63 per cent, to 4,108.54 and the Nasdaq Composite dropped 304.16 points, or 2.47 per cent, to 12,012.73.
Asian shares made a muted start on Monday as caution gripped ahead of a critical reading on US inflation, while the euro gained on the yen amid wagers the European Central Bank will take a major step toward policy tightening this week.
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