Market May Remain Weak
Indian equities market succumbed to selling pressure Monday on concerns that stricter norms for participatory notes may hit foreign investments and a major slump in Chinese stocks. The Sensex slumped 550 points to settle at 27,561 and Nifty plunged 160 points to settle below its crucial psychological level of 8,400 at 8,361. The broader markets also caught in beat grip with the BSE Midcap and Smallcap indices closed lower by 1.38% and 1.07%, respectively. Sectorally, BSE metal index fell the most, followed by capital goods, metal, banking, power, realty and auto.
Wall Street equities slid Monday, propelling to their fifth consecutive session of losses after a big drop in the Chinese stock market sparked worries about global economic growth. Also continued decline in commodities, amid a lackluster earnings season. The Nasdaq Composite was hit the hardest, falling 48.85 points, or 1%, to 5,039.78. The Dow Jones Industrial Average fell 127.94 points, or 0.7%, to 17,440.59. The S&P 500 SPX dropped 12 points, or 0.6%, lower at 2,067.64. The U.S. will be back in focus later this week, with the Federal Reserve reporting its latest monetary policy decision on Wednesday.
Oil prices fell to a four-month low Monday on the back of renewed oversupply concerns. WTI crude for September delivery settled down 75 cents, or 1.6%, at USD 47.39 a barrel on the New York Mercantile Exchange, the lowest settlement since March 20. Brent fell USD 1.15, or 2.1%, to USD 53.47 a barrel, the lowest level since March 16. Brent prices have fallen 21% from a recent high reached in May, meeting the common definition of a bear market.
European stock closed lower on Monday, following a meltdown in Chinese stock markets, which comes just a day ahead of a highly anticipated Federal Reserve meeting. The Stoxx Europe 600 fell 2.2% to close at 385.91. Germany’s DAX 30 fell 2.6% to finish at 11,056.40 and France’s CAC 40 also gave up 2.6%, losing grip of the 5,000 level. The U.K.’s FTSE 100 shed 1.1% to end at 6,505.13.
Asian stocks fell to three-week lows on Tuesday after a rout in Chinese equities drove global shares lower. Japan’s NIKKEI 225 index declined 0.94% as the yen held three days of gains to trade at 123.27 per dollar. South Korea’s Kospi index retreated 0.44% and Australia’s S&P/ASX 200 Index slid 0.22%. New Zealand’s NZX 50 Index lost 0.53%. Share markets in China took another tumble early Tuesday by lower 2%, leading losses in the region as the 8.5% plunge in the benchmark Shanghai Composite index in the previous session.
A SGX CNX Nifty Index future for July delivery was down 5 points at 8,350. Indian markets may remain weak on account of globally negative sentiment. The market is likely to stay volatile this week ahead of F&O expiry on Thursday. Blue Star, GSFC, ABCIL, RPG Life, HDFC, Union Bank, Syndicate Bank, PNB, Dish TV, Maruti, Pidilite, Andra sugar, IDBI and PI Industries would be reporting first quarter earnings today.