Sensex falls 300 points tracking weak global trends; Nifty below 19,500
Fitch's downgrade of the United States' credit rating, Indian equity markets opened in the red for the second straight session on Thursday, dragged by banking, financial and IT stocks. The BSE Sensex was trading 285 points or 0.43% lower at 65,497. Nifty50 was trading at 19,442, down 84 points or 0.43% at around 9.17 am.
Among Sensex stocks, UltraTech Cement, Bajaj Finserv, Maruti, HUL, Airtel, ICICI Bank, and L&T opened with cuts, while only Sun Pharma, NTPC, HDFC Bank, and Tata Motors opened with gains. Shares of Mankind Pharma opened 9% higher after the company reported a 66% rise in first-quarter profit, boosted by sales growth. Whereas, shares of IndiGo fell 4% despite the firm reported a consolidated net profit of Rs 3,091 crore for the quarter that ended June, compared with a loss of Rs 1,064 crore in the year-ago period.
On the sectoral front, Nifty Metal plunged 0.41%, and Nifty IT fell 0.30%. Nifty FMCG, Nifty Realty, and Nifty Financial Services also opened lower. In the broader market, Nifty Midcap 100 rose 0.18%, and Nifty Smallcap 100 gained 0.29%.Experts Take «GDP growth in the US is strong and inflation is coming down.
80% of US companies have posted better than expected quarterly results. The Fitch downgrade doesn’t alter this significant macro construct. The sentimental impact of the rating downgrade will likely fade away soon,» V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
The valuations in India continue to be rich from the short-term perspective, but fair for long-term investors. Weakness in the market may be used to slowly accumulate high-quality stocks which have corrected, Vijayakumar added. Deepak Jasani, Head of Retail Research at HDFC Securities, said, «As
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