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Market Report

Tuesday, 01-Sept-2015

NSE

  • The S&P BSE Sensex plummeted 586.65 points on Tuesday amid weak GDP data and a slump in equity markets the world over, as a contraction in August PMI stoked fears of a sharper slowdown in the Chinese economy. The 30-pack index settled the day -2.23 per cent lower at 25,696.44 today.

  • The 50-pack Nifty shed 185.45 points, or -2.33 per cent, to close at 7,785.85 today, after shuttling between 7,907.95 and 7,929.10 in intraday. The Nifty slipped below the 7,800-mark due to sustained selling across the board, with all the sectoral indices ending in the red. 28 of the 30 Sensex stocks ended the day in red. Hindalco and Axis Bank were the top losers, down 5 per cent each.

  • Top two global rating agencies have lowered their growth forecast for India, citing concerns on reforms and other factors. Fitch on Tuesday slashed FY16 real GDP growth forecast to 7.8% from 8%, and FY17 forecast to 8.1% from 8.3%. Earlier in August, ratings agency Moody's has already lowered its growth estimate for the year to 7 per cent from 7.5 per cent estimated earlier.

  • Globally, overnight losses in the US market, China growth concerns resurfacing after PMI contracted in August, and a rate hike by US Federal Reserve in September weighed on sentiment. Asian markets led by Japanese Nikkei settled more than -3 per cent lower. European indices were also down by up to -2.5 per cent at the time the domestic market closed.

  • Experts are of the view that India may not remain insulated from the outside world, be it Fed rate hike or China jitters. There would be a knee-jerk reaction, but fundamentally we are much better placed and investors can pick stocks on declines for an investment period of over 1 year.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)