The Indian equity market struggled with a weak sentiment on September 27 mirroring the subdued trend across global counterparts. The market opened lower with marginal losses with the Nifty briefly breaking below 19,600, a crucial support level.
The spike in yields on US bonds, a surge in the dollar index, elevated Brent crude prices, and relentless selling from FIIs are major factors hampering sentiment for local equities.
At noon, the Sensex was down 114.70 points or 0.17 percent at 65,830.77, and the Nifty was down 25.80 points or 0.13 percent at 19,638.90.
About 1,509 shares advanced, 1,474 declined, and 130 were unchanged.
"The triple whammy of the rising dollar, spiking US bond yields and high Brent crude continues to impact Indian equity markets. The cues from the mother market US also are negative. It appears that the market is pricing in a ‘higher for longer’ rate regime in the US, which is not favourable to equity markets in the near-term," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Follow our live blog for all the market action
Analysts see critical support for the benchmark Nifty at 19,600, a decisive break below which can trigger further downfall towards 19,500. On the upside, resistance comes around 19,700.
Stocks and sectors
Shares of Vedanta were buzzing in trade today as it slumped 6 percent to hit a 52-week low after Moody’s Investor Service downgraded corporate family rating of the Anil-Agarwal promoted company to Caa2 from Caa1.
Suzlon Energy also slipped over 3 percent after Sun Pharma promoter Dilip Shanghvi and his associate companies decided to terminate the amended and restated shareholders' agreement, signed in February 2020.
Banks also witnessed strong selling, with stocks like ICICI Bank and HDFC Bank falling around a percent. As a result of losses in index heavyweights, the Nifty Bank index also dropped 0.6 percent to emerge as the top sectoral laggard.
Among the stocks that rose were those of Healthcare Global, which jumped over 5 percent following reports that the company's promoter, private equity firm CVC Capital, was looking to exit the cancer hospital chain by offloading its entire 60-percent stake.
The broader market fared better than the large-caps yet again as the Nifty Smallcap 100 rose 0.6 percent while the Nifty Midcap 100 was up 0.4 percent.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
