D-Street to witness dark clouds
D-Street has a lot to face this morning. Some of the major reasons are the rising anxiety regarding resurge of coronavirus cases and geopolitical tensions. Further, IMF projected India’s GDP to contract by 4.5 per cent in FY21 confirming weakness in growth. Early trends on SGX Nifty is indicating markets to start in red. At 7:58 AM, it was down by 134.50 points at 10,178.50. Post losses on opening bell, volatility would be the buzzword on D-Street on account of the June F&O series expiry.
Wall Street witnessed a landslide fall overnight as certain major state in the US has seen spike in number of coronavirus infections. This led Asian indices to fall in a sea of red. Japan’s Nikkei is severely impacted as it is one of the worst performing major indices in Asian region, drowning by 1.57 per cent. Hong Kong’s Hang Seng is also trading lower. Meanwhile, China’s Shanghai Composite is closed on account of holiday.
Asian Markets
|
Asia Opening
|
Price
|
Change
|
% Change
|
|
Nikkei 225
|
22,180.61
|
-353.71
|
-1.57
|
|
Hang Seng
|
24,781.58
|
-125.76
|
-0.50
|
|
Shanghai
|
NA
|
NA
|
NA
|
|
SGX Nifty
|
10,178.50
|
-134.50
|
-1.30
|
Bulls, after registering a fiery up-move in the last four trading sessions, got a reality check on Wednesday as bears returned to Dalal Street with a bang. Both the Sensex and Nifty lost 1.58 per cent to settle at 34,869 and 10,305 levels, respectively. India VIX (volatility index), ascended over 2 per cent to 29.58. On sectoral front, except for Nifty FMCG, all other indices ended lower. Nifty Private Bank and Nifty Bank witnessed worst hit. In the broader market, Nifty Mid-cap and Nifty Small-cap dropped 1.41 per cent and 1.80 per cent, respectively. Advance-decline ratio was inclined towards decliners.
On Wednesday, as Wall Street seemed to be grappling with myriad potential headwinds, the US stocks plunged sharply lower. This was on back of surge in coronavirus infections in several major state economies with Texas, Florida and California reporting more than 5,000 new cases each. Secondly, IMF downgraded its global economic growth outlook. Further, reports emerged which indicated that the US is considering new tariffs on EU goods. At closing bell, Dow was worst hit followed by S&P 500 and the tech-heavy Nasdaq. Same factors which led to decline of the stocks on Wall Street, also had an impact on European markets leading them to end in red.
US Markets
|
US Closed
|
Price
|
Change
|
% Change
|
|
Dow
|
25,445.94
|
-710.16
|
-2.72
|
|
S&P 500
|
3,050.33
|
-80.96
|
-2.59
|
|
Nasdaq
|
9,909.17
|
-222.20
|
-2.19
|
|
GlobalDow
|
2,792.71
|
-10.57
|
-0.38
|
Europe Markets
|
Europe Closed
|
Price
|
Change
|
% Change
|
|
FTSE 100
|
6,123.69
|
-196.43
|
-3.11
|
|
DAX
|
12,093.94
|
-429.82
|
-3.43
|
|
CAC 40
|
4,871.36
|
-146.32
|
-2.92
|
|
FTSE MIB
|
19,162.98
|
-678.60
|
-3.42
|
|
IBEX 35
|
7,195.50
|
-242.90
|
-3.27
|
|
Stoxx 600
|
357.17
|
-10.23
|
-2.78
|
Commodity
|
Commodity
|
Price
|
Change
|
% Change
|
|
Gold
|
1,773.90
|
-1.20
|
-0.07
|
|
Oil
|
38.01
|
0.00
|
0.00
|