Market Reality
India's equity markets, long buoyed by strong economic growth and rising corporate earnings, are now facing a sharp and prolonged correction.
The benchmark S&P BSE Sensex swung between gains in losses on Friday morning amid weakness in Asian peers.
The S&P BSE Sensex index recovered early losses to rebound as much as 292.58 points from an intraday low of 38,893.58 to top the 39,100 mark on the upside, before reversing direction as volatility set in. Nifty dropped around 11,526.80.
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All but consumer goods shares remained in the positive zone as a selloff in banking, auto and metal stocks deepened. Analysts say some consolidation can be expected in the near term after the recent rally.
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On the global cues U.S. stocks slipped on Thursday as the release of a whistleblower report against Trump kept uncertainty high. The Dow Jones Industrial Average fell 0.3 per cent, the S&P 500 lost 0.24 per cent, and the Nasdaq Composite dropped 0.58 per cent. Asian shares also dipped in Friday’s morning trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.09 per cent, while Japan’s Nikkei slid 0.54 per cent. Oil prices steadied off two-week lows. Brent crude futures fell 0.53 per cent to $62.41 a barrel.
(With input from agencies)
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