If Nifty is able to hold today’s low, it can rally upto 7,950 over the next two days
We had mentioned in Tuesday’s closing report that Nifty, Sensex may record further losses. The indices in the Indian stock market did not improve on Wednesday and closed with losses of 1% and higher. The initial gains of over 240 points in the S & P BSE Sensex came on the back of the government's decision that minimum alternate tax (MAT) will not be imposed on foreign portfolio and institutional investors. The bulls could not sustain their buying due to continued weakness in the Asian markets coupled with less-than-expected macro data.
The Q1 GDP came in at 7%, showing signs of slowing vis-a-vis the 7.5% expansion during the previous quarter. The Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month stood at 52.3, which is marginally down from July's 52.7.
Sector-wise, S&P BSE banking, automobile, capital goods, consumer durables and oil and gas indices came under intense selling pressure.
The S&P BSE banking index plunged by 369.82 points, the capital goods index fell by 281.05 points, the automobile index contracted by 216.84 points, the consumer durables index declined by 128.79 points, the oil and gas index decreased by 104.55 points and healthcare index edged lower by 102.75 points.
However, information technology (IT) index rose by 125.83 points, technology, entertainment and media (TECK) index gained by 54.83 points and fast moving consumer goods (FMCG) index rose by 47.82 points.
The top gainers and losers of major indices in the Indian stock markets are given in the table below:
The closing values of major Asian indices are given in the table below:
At the time of writing this piece, the DAX was up 0.75% and the FTSE 100 was at 6,069.88, up 1.21%. Dow was trading almost 200 points higher.