Send me real-time posts from this site at my email
Indian Stocks

India: benchmarks nosedive

The Indian stock market landed in negative territory on Thursday, December 6 on reports that the CEO of China’s major telecom equipment maker Huawei was arrested in Canada on suspicions of having breached US trade sanctions against Iran. Notably, the news triggered a sell-off across Asian markets.

Moreover, Indian benchmarks came under pressure after Fitch Ratings released its updated Indian economic outlook for the current fiscal year. Specifically, the agency slashed its GDP forecast to 7.2% from 7.8% expected in September. Fitch’s outlook is now lower than that of the country’s central bank, which projects 7.4% growth in the current fiscal year.

To remind, the regulator predictably kept the key rate on hold at 6.5% yesterday.

Recapping the benchmarks, the Nifty 50 slid 1.69% to 10,601.15, and the BSE Sensex declined 1.59%, settling at 35,312.13.

By 10:50 GMT, USD/INR firmed 0.28% to 70.865, while EUR/INR rose 0.33% to 80.3035. The 10-year Indian government bond yield stood at 7.387%.

Banking names were out of luck. In particular, Punjab National Bank, ICICI Bank, State Bank of India and Bank of Baroda shed 4.28%, 0.97%, 1.62% and 2.19%, respectively.

Furthermore, the session’s laggards included real estate, high-tech and automotive stocks. In the upshot, DLF and Indiabulls Re plunged 5.76% and 3.56%, while Infosys, Tech Mahindra, Wipro, Tata Motors and Ashok Leyland gave up 1.72%, 4.38%, 1.92%, 3.96% and 1.54%, respectively.

The daily chart shows that the BSE Sensex has breached the lower line of a rising wedge, while the Slow Stochastic Oscillator has just left overbought territory. As a result, the downtrend will likely persist in the short term.

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue