Weakness in global markets weighed on Dalal Street in early trade on September 9, with both Sensex and Nifty off lows but subdued after opening in the red, weighed down by selling in energy and automobile shares.
At 10.20 am, the Sensex was off flat at 81,160 and the Nifty was down 14 points at 24,837. About 1,132 shares advanced, 1,693 shares declined, and 155 shares remained unchanged.
Weaker US employment numbers added to concerns over Fed's rate-setting agenda, with some experts talking about a possibility of larger-than-expected rate cuts. This week could see high volatility, as jobs data and the pending Fed decision plays out.
Follow our live blog for all the market action
ONGC, Hindalco, Tata Steel, Power Grid, and Adani Ports fell 1.4-2.4 percent, becoming the worst-hit stocks on Nifty 50. Meanwhile, SBI Life, HDFC Life, HUL, Bajaj Finserv, and Bajaj Finance rose 0.7-1 percent, emerging as the top gainers on Nifty 50.
Shares of Granules India fell over 3 percent after US FDA issued 6 observations for its Hyderabad unit. Godfrey Phillips shares fell 4 percent after shareholders re-appointed Bina Modi as MD of the company. Meanwhile, shares of SpiceJet surged as much as 5.5 percent in early trade, after the company announced plans to issue shares to Carlyle Aviation as part of a restructuring deal to convert a portion of its dues into equity.
On Friday, Nifty 50 dropped below the critical support level of 25,000. Ajit Mishra, SVP of Research at Religare Broking has identified 24,500 as a key support level for today. "Given the circumstances, it is advisable to avoid taking aggressive positions and to apply strict stop losses on existing trades," he said.
Also Read | Ola Electric’s one-month lock-in period expires, 18.18 crore shares become eligible for trade
US jobs report, released on September 6, showed a weaker-than-expected increase in non-farm payrolls for August, raising expectations that the Federal Reserve may begin cutting interest rates at its upcoming September meeting. Payrolls increased by 142,000 in August, falling short of forecasts, while the unemployment rate eased slightly to 4.2 percent from 4.3 percent in July.
While some analysts say delayed rate cuts could lead to a recession, others believe early cuts could risk spiking inflation once again. The S&P 500 and Nasdaq fell 1.7 and 2.6 percent on September 6. The Fed now faces the challenge of balancing job market protection with inflation control ahead of the November elections.
The Asia-Pacific markets also fell in trade on September 9, with Japan's Nikkei 225 (down over 2 percent) leading losses in the region. Japan's Q2 GDP grew 2.9 percent on an annualised basis, below the 3.2 percent forecast expected by economists polled by Reuters. China's inflation rose 0.6 percent year-on-year, missing the 0.7 percent expectation, while its monthly CPI increased 0.4 percent, also below the 0.5 percent forecast.
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!