Stock Market Today, Share Market Updates: The frontline equity indices on the BSE and National Stock Exchange (NSE) opened over 1 per cent lower on Thursday and further and slipped over 1.7 per cent in the early trade tracking weakness in the global market.
At 9:47 am, the S&P BSE Sensex was down 958.31 points (1.77 per cent) at 53,130.08, while the Nifty 50 was trading at 15,875.85, down 291.25 points (1.80 per cent).
On the Sensex pack, HDFC Bank, Reliance Industries (RIL), ICICI Bank, Housing Development Finance Corporation (HDFC) and Infosys were the top contributors to the index’s fall in early trade on Thursday.
“Inflation continues to be a major headwind for markets. Consumer inflation in the US in April coming at 8.3 per cent reinforces market’s concern about aggressive rate hikes by the Fed and the possibility of a US recession in 2023. With dollar index at 104 and expected to strengthen further FIIs are likely to continue selling till Indian valuation becomes attractive. Even though DII buying is more than FII selling now, that is not enough to lift sentiments in the market since the macro headwinds are strong,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said in a note.
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He further noted that “Market’s preference for value over growth is reflected in the strength of high quality banking stocks which are even now at buyable valuations.”
The rupee slumped 30 paise to 77.55 against the US dollar in opening trade on Thursday as a lacklustre trend in the domestic equity markets and a firm American currency weighed on investor sentiment. Besides, persistent foreign fund outflows and elevated crude oil prices impacted the domestic unit, forex traders said.
At the interbank foreign exchange, the rupee opened sharply lower at 77.52 against the American dollar, then lost further ground to quote 77.55, registering a fall of 30 paise from the last close. In initial deals, the domestic currency was moving in a range of 77.50 and 77.57.
Shares fell in Asia on Thursday after the release of worse inflation data than expected sparked heavy selling of technology stocks on Wall Street.
Hong Kong’s benchmark dipped 1.5 per cent in early trading following the arrests of several prominent democracy advocates, including a retired Roman Catholic cardinal.
Wednesday’s report from the US Labor Department showed inflation slowed a touch in April, down to 8.3 per cent from 8.5 per cent in March.
Markets are focused on inflation and where it’s heading because it’s causing the central banks to wind down support for economies that was rolled out during the pandemic. The US Federal Reserve, for example, has flipped aggressively toward raising interest rates after seeing high inflation last longer than it expected.
By midday, Hong Kong’s Hang Seng was 1.1 per cent lower at 19,613.34. Tokyo’s Nikkei 225 gave up 0.8 per cent to 26,905.91. The Shanghai Composite index edged 0.2 per cent lower to 3,051.77. Australia’s S&P/ASX 200 lost 0.9 per cent to 7,002.50. South Korea’s Kospi slipped 0.3 per cent to 2,584.97.
-rupee input from PTI, global market input from AP