Sensex drops over 100 points, Nifty near 17,300

The benchmark indices on Tuesday morning were down as they followed Asian markets.

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The benchmark indices on Tuesday morning were down as they followed Asian markets. In the first transaction, the Sensex fell more than 100 points while the Barometer Nifty50 slid close to 17,300. Both the former and the latter started at 17,310.15 with an approximately 0.20 percent cut apiece.

The Nifty midcap and Smallcap indices saw some profit taking in the broader market as well, falling 0.35 percent and 0.25 percent, respectively.

Nifty FMCG and Nifty Media among sectors indexes saw gains, while others saw declines. The two sectoral indices that lagged the most were Nifty Metal and Auto.

“The market message from the sharp decline in the US 10-year bond yield to 2.57% from the recent high of 3.27% is that the Fed is nearing the end of its tightening cycle with only one more large hike in September and small hikes thereafter, taking the terminal rate to around 3.5%,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

According to him, this has helped the market rally, with India emerging as one of the strongest performers.

Anand James, chief market strategist at Geojit Financial Services, commented on the Nifty forecast, stating that today is expected to be an eventful day given that the Nifty finished close to 17320, which served as our turnaround point for yesterday. Favored theory predicts a decline towards the 17240–110 area, while James claimed a spike above 17355 would indicate a continuation of the 17500 advance.

The SGX Nifty dropped earlier, at 8 a.m. on Tuesday, on the Singaporean exchange, signalling a negative opening.

Early on Tuesday, the Hong Kong Exchange’s Hang Seng Index sank by almost 3%, the Japanese Nikkei 225 fell by 1.6 percent, the Chinese Shanghai Composite was down by 2.3 percent.

Prior to it, the US market closed Monday with only minor losses. Nasdaq sank 0.18 percent, the Dow Jones fell 0.14 percent, and the S&P 500 finished the day down 0.28 percent.

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