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sensex news: Sensex tumbles over 600 points on mounting US recession fears, Nifty below 17,700


Domestic benchmark indices opened in the red on Friday, tracking weak global cues. The losses were led by the banking and IT stocks.

At 9.56 am, the BSE Sensex was trading 670 points or 1.12 per cent lower at 59,264. Nifty50 was trading at 17,683, down 194 points or 1.09 per cent.

V K Vijayakumar, Chief Investment Strategist at

said that the market has started showing some indications of fatigue. Globally, the major concern now is that the Fed might oversteer the economy and end up raising rates too much too fast, pushing the US economy into a sharp recession.

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“There are talks of the terminal Fed rate rising to 4.25 per cent. Sharply rising rates, rising bond yields and rising dollar are negatives for equity. In this challenging environment it would be difficult for India to sustain the decoupling from the global trend which has been a recent pattern in India,” Vijaykumar added.

Moreover, FIIs have halted their sustained buying and have turned sellers, though this is not yet a trend. Investors may adopt a wait and watch attitude till the Fed meeting is over on 21st September, Vijaykumar added.

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Among Sensex stocks, M&M fell 2.07 per cent to Rs 1,270.10. , , , and declined 2.06 per cent, 1.65 per cent, 1.63 per cent and 1.25 per cent, respectively. , and tumbled 1.13 per cent, 1.06 per cent and 0.98 per cent, respectively.

Sectorally, the Nifty IT index fell 1.56 per cent, while Nifty Auto declined 0.84 per cent. Nifty Midcap50 and Smallcap50 dropped 0.18 per cent and 0.22 per cent, respectively.

The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, decreased 0.02 per cent to 109.71 level.

On Thursday, US markets ended lower, S&P 500, Dow Jones and Nasdaq declined 1.13 per cent, 0.56 per cent and 1.43 per cent, respectively.

“There will be some cautiousness as Global Rating agency Moody’s said India’s rated infrastructure firms can largely withstand further depreciation in the value of rupee against US dollar due to financial hedges and other mitigants,” said Mohit Nigam, Head – PMS, Hem Securities.

On the technical front, the key resistance level for Nifty50 is 18,000 and on the downside 17,650 can act as strong support. Key resistance and support levels for Bank Nifty are 41,700 and 40,800, respectively, Nigam added.

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