Market records steepest weekly declines in over two years
At close, Sensex ended near the 78,000 mark, shedding 1.5% from the previous session, while the Nifty fell below 23,600, also down 1.5%.
Snapping three straight sessions of losses, Indian stocks traded in the green on Wednesday morning, largely due to value buying by investors.
At 9.44 am, Sensex traded at 57,428.45 points, up 281.13 points or 0.49 per cent, whereas Nifty traded at 17,063.80 points, up 80.25 points or 0.47 per cent.
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Among the Nifty 50 stocks, 41 declined and the rest 9 advanced this morning, National Stock Exchange data showed.
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A relative decline in global crude oil prices too may have lent support to the equities, said Mohit Nigam, Head – PMS at Hem Securities.
“…But potential gains may be constrained by ongoing concerns over the dynamics of economic growth and inflation as well as fresh geopolitical tensions in the wake of Russian attacks on significant Ukrainian cities. Indian markets closed in red for a third straight day on Tuesday amid weakness across global peers,” Nigam said.
“Investors may be concerned since the International Monetary Fund (IMF) forecasted 6.8 per cent growth in 2022, a 0.6 percentage point decrease from the July prediction, reflecting a weaker-than-expected second-quarter outturn and more muted external demand,” Nigam added.
The International Monetary Fund (IMF) on Tuesday lowered India’s GDP growth forecast for the current year by 60 basis points to 6.8 per cent. The IMF’s latest projection on India’s GDP growth is lower than the 7 per cent growth pegged by the Reserve Bank of India (RBI) for the financial year 2022-23.
For fresh cues, stock market investors will closely monitor September inflation data in the US, scheduled for release Thursday.
“A possible trigger for this is positive data from US inflation data coming tomorrow. So watch out for the crucial US CPI numbers for signs of inflation cooling off,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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