BUSINESS

Market Closing: Vodafone Idea Jumps 9%; Nifty Slips Below 19,250; Sensex Drops 366 points

On Friday, the equities markets gave in to widespread selling pressure when it was disclosed in the minutes of the RBI’s August meeting that RBI Governor Das anticipates a considerable increase in headline CPI inflation between July and August. Additionally, investors choose to avoid trading ahead of Jerome Powell’s address at the Jackson Hole Symposium later tonight.

The S&P BSE Sensex hit a low of 64,733 before losing 366 points to close the day at 64,887. The BSE benchmark has now been in the red for a total of five weeks, shedding 2.7% or 1,797 points over that time.

The NSE Nifty 50 recorded a low of 19,230 before settling at 19,266—a decrease of 121 points. The Nifty has lost 479 points, or 2.4%, during the previous five weeks.

The top losses in the Sensex 30 on Friday were Larsen & Toubro, IndusInd Bank, and JSW Steel, each down around 2%. A significant drag on the market was HDFC Bank, whose 1% drop resulted in a loss of more than 100 points on the Sensex alone.

Geojit Financial Services’ Chief Investment Strategist, Dr. V K Vijayakumar, stated: “The market is looking for catalysts while being carefully positioned. Yesterday’s market inability to hold onto the excitement brought on by the successful Chandrayaan-3 mission and its favorable effect on companies associated to the mission was evidence of the fleeting nature of feelings.

Jerome Powell, the head of the Fed, will deliver a speech tonight, and all eyes will be on it for any hints about the direction that US interest rates may take going forward. He said it is doubtful that the Fed chairman would suggest that the cycle of rate increases is nearing its conclusion.

The steady increase in the prices of many small- and micro-cap stocks is a negative market trend. This is helped in part by the ongoing inflow of capital into the small-cap market. The segment’s valuations are getting close to dangerous levels. In large-caps now, safety,” he said.

 

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