The Sensex and Nifty opened slightly lower on September 6 but fell sharply thereafter ahead of a crucial US jobs report that could determine the size and speed of the Federal Reserve's interest rate cuts later this month. Energy and banking stocks witnessed selling pressure in early trade while the Nifty IT index gained 0.8 percent.
At 10.00 AM, the Sensex was down 561 points or 0.7 percent at 81,639. Nifty fell below its crucial support of 25,000 and was down 161 points or 0.6 percent at 24,983. About 1,286 shares advanced, 1,778 shares declined, and 119 shares remained unchanged.
"In the past couple of sessions, the markets have been consolidating within a range on the index front. Despite this, the broader markets, particularly small-cap and mid-cap indices, have continued to make new record highs, indicating strong stock-specific buying interest. In the short term, the market may experience time-wise consolidation rather than price-wise corrections," Ruchit Jain, Lead Research Analyst at 5paisa told Moneycontrol.
Follow our live blog for all the market action
Coming to sectoral performance, Nifty Private Bank, Nifty Bank, and Nifty PSU Bank declined 0.7-1.7 percent. SBI fell over 3 percent and was the worst-hit stock on Nifty 50 after Goldman downgraded the stock to 'Sell' and cut the target price to Rs 742 from Rs 841. Coal India, ONGC, and UltraTech Cement were some of the other losers on Nifty 50.
Nifty IT which has risen nearly a percent in early trade, gave up its gains and fell 0.2 percent. LTIMindtree, however continued to top the Nifty 50 gainers lists, rising 1.5 percent, after Morgan Stanley upgraded the stock to 'overweight' and raised its target price to Rs 7,050 per share. Bajaj Finance, Britannia, Bajaj Finserv, and TCS were some of the other gainers on Nifty 50.
The broader market also saw selling pressure with BSE Midcap and Smallcap indices falling 0.8 and 0.3 percent, respectively.
The volatility index, India VIX, rose over 7 percent to 15.3.
Also Read | Twelve IPOs will compete to raise over $1 billion next week
Overnight, the US benchmark indices S&P 500 and Dow closed lower after the boost from a series of economic reports faded, with investors shifting their focus to key US jobs data due later in the day. Traders currently see a 59 percent chance of a quarter-point rate cut, according to CME's FedWatch tool.
In Asia-Pacific, markets mostly declined in early trade as investors digested Japan's July household spending data which fell short of expectations and rose just 0.1 percent year-over-year. The weak spending figures may limit the Bank of Japan's options for raising interest rates.
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!
