Sensex, Nifty off for a dark start; Banking and financial stocks worry investors mid-week

Sensex, Nifty off for a dark start; Banking and financial stocks worry investors mid-week

National equity indices saw a downward swing from Tuesday’s closing levels, as indicated by SGX Nifty futures, and following the slowdown in U.S. markets, sluggish consumer sentiment fueling fears recession in the world’s largest economy.
As of 9:31 a.m., the 30-stock S&P BSE Sensex was above levels of 52,705, down more than 472 points or 0.89%, and the broader CNX Nifty50 gauge was above 15,719, down nearly 131 or 0.83% from yesterday’s closing levels.

Dr Reddy’s, Sun Pharma, Shree Cements, Nestle India were the only winners from Nifty so far while IndusInd Bank, Bajaj Finserv, Hindustan Unilever, Hindalco and Titan were the major losers.

Broader markets slid more than benchmarks with Nifty SmallCap 100 and Nifty Midcap 100 losing 0.9-1% in early trades.

All sector gauges traded with losses, with the Nifty Private Bank, Nifty Bank, PSU Bank and Financial Services indices taking the bulk of the sell-off.

On Tuesday, 15700 proved to be a key level going through an initial dip and subsequent recovery. Nifty ended the session with negligible gains at 15850.

“The 15750 to 15700 range remains a strong support area and until we don’t slip below it should continue with a downside buy strategy. On the other hand, 15925 to 16000 should be considered like a solid wall At the moment there is no indication that the market will break above the 16,000 mark, but by the time we do we will likely see a strong short cover rally in the market for the index of benchmark,” said Sameet Chavan, Principal Analyst – Technical and Derivatives, Angel One Ltd.

Robert D. Coleman