Indices fall one per cent on global cues, GDP forecast

At close on Monday’s session, the Sensex was down 518.64 points, or 0.84%, at 61,144.84, and the Nifty was down 147.70 points, or 0.81%, at 18,160.

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NEW DELHI: Despite a significant fall in crude oil prices, India’s equity market closed in red on Monday, with benchmarks Sensex and Nifty falling about 1% each. The fall came amid mixed global cues following indications of hawkish stance maintained by the US Federal Reserve over future rate hikes.
Add to it, global financial giant Goldman Sachs’ downward revision in its forecast for India’s economic growth by 1% for the calendar year 2023 dented sentiment.

At close on Monday’s session, the Sensex was down 518.64 points, or 0.84%, at 61,144.84, and the Nifty was down 147.70 points, or 0.81%, at 18,160. “The sharp decline in crude prices is a huge positive for the domestic economy. However, the market didn’t respond favourably due to stronger headwinds from the global market,” said Vinod Nair, head of research at Geojit Financial Services. International oil prices hit two-month low on Monday as they fell below the $87 per barrel mark.

“The prospect of a prolonged tightening cycle by the US Federal Reserve and the Chinese COVID restrictions affected the world market,” added Nair. Ajit Mishra, VP - of Research, Religare Broking said market participants should see the dip as normal profit-taking after the recent surge as he expects the 17950-18050 zone (for Nifty) to act as immediate support for the 50-share index.

“While we’re seeing a mixed trend across sectors, resilience in the banking space is playing a critical role in capping the damage so far. We recommend continuing with a stock-specific trading approach and maintaining positions on both sides,” Mishra added. In the Nifty pack, about 35 stocks closed the Monday session with a cut. Adani Ports, Hindalco, JSW Steel and heavyweights- TCS, HDFC and Reliance Industries fell in the range of 1.5% to 2%.

US Fed stance on rate hike dents mkt
Fall came amid mixed global cues following hawkish stance maintained by US Fed over future rate hikes. Goldman Sachs’ downward revision for India’s GDP by 1% for calendar year 2023 also dented sentiment.