On the first day of this week’s trading session, Indian markets retreated from their record highs, with broad-based sales and mixed global references ahead of key economic data. Except IT, all other sector indices were up 2-4% on Monday. Investors booked profits as the Sensex and Nifty 50 exceeded the limits.
At 09.37 am, the Sensex was down 388.27 points, or 0.74%, at 52,086.49. Meanwhile, the Nifty 50 was down 139.65 points, or 0.88%, at 15,659.70.
Over a broad market period, India’s volatility index rose 5.3%. Other NSE indices jumped between 1-2%.
By sector, Nifty Metal was down 2.9%, while Nifty Medial, Nifty PSU Bank, and Nifty Realty were down 2.7%, 2.2%, and 2.5% respectively. The IT index was only green, however, while heavyweights DCS and Infosys kept the bears in the bay.
Top bulls on NSE – Infosys up 1.1%, Wipro and TCS up slightly.
Top Bears on the NSE – Adani Ports fell 14.5%, while Coal India fell 3%. Shares such as SBI, Hindalco, and UPL each fell more than 2%.
Asian markets were on a mixed note as investors prepared for the US Federal Reserve policy later in the week. Also, many large stock exchanges in the region were closed during the holidays.
Japan’s Nikkei 225 saw a positive outlook, while South Korea’s Kospi Flat traded. The BSE Sensex topped the Asian lead. Stock markets in Australia, Mainland China, and Hong Kong are closed today for the holidays.
Last week, on Friday, US markets recovered from a low of the Dow Jones Intraday and closed flat, while the Nasdaq ended with a gain of 45 points. Bond yields have closed at an all-time low of 1.47% over the past three months.
Markets are consolidating as they wait for the Federal Reserve policy meeting on Wednesday to determine the market direction of bonds, stocks, and currencies.
On Friday, the Sensex touched a historic 52641.53 and the Nifty 50 lifetime high of 15,835.55.
On the economic front, India announced that it would raise the Index of Industrial Production (IIP) to 134.44 percent in April 2021. The government will also present CBI and WPI inflation data this weekend.