Indian shares sulk on global risk off sentiment
₹4.78 trillion. Displaying signs of rising investor uncertainty amid increasing recessionary fears in the US and worsening geopolitical risks in the Middle East, the Nifty plunged 1.17% to 24,717.7 and the Sensex, 1.1% to 80,981, the steepest fall since the general election results day on 4 June.
On Friday, FIIs (foreign institutional investors) sold shares worth a provisional ₹3,310 crore, and DIIs (domestic institutional investors) purchased a provisional ₹2,966 crore, showed BSE data, but experts said likely selling by retail investors in the secondary market soured sentiment. Indian investor fears on Friday were underscored by the India Vix, which rose by 11.4% to 14.41, the most since 4 June when the fear gauge rose by 27% to 26.75 after a weaker-than-expected performance by the BJP-led NDA at the hustings.
Andrew Holland, chief executive of Avendus Capital Public Markets Alternate Strategies, expects the volatility in Indian markets to increase, especially on supply disruptions to crude oil on rising tensions in the Middle East. Gaurang Shah, senior vice-president at Geojit Financial Services, expects the Nifty to trade in a 24,600-25,400 range in the short term.
But if geopolitical tensions increase, Indian stocks could be in for a “spot of bother", he added. US equities could remain under pressure for a second straight day with non-farm payrolls indicating that 114,000 jobs were added last month against estimates of 176,000, and the unemployment rate rose to 4.3% from 4.1% in June, the highest since November 2021.
S&P 500 futures were trading down 1.67%, following an overnight fall of 1.37% in the spot S&P 500, indicating more trouble for the US markets, which could spill over to other markets next week. Earlier
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