The stock market of India failed to catch the Wall Street rally that was fuelled by the Fed rate cut hopes. The current dip at Indian indices are caused by the rising tension between China and the US over tariff dispute, say experts. The BSE Sensex lost 148 points to 39,453 while the 50-stock Nifty went down 34 points to 11,797 levels. The index Bank Nifty lost 139 points to 30,641 levels. Jet Airways, IFCI, Manpasand Beverage, Tata Motors and Adani Enterprises stocks were the top five losing shares in the early morning trade while JaiprakashAssociates, Jain Irrigation, Adani Green Energy, UPL and Jammu & Kashmir Bank were among the top five gaining stocks in the intraday trade.
Speaking on the current market scenario SEBI registered technical equity analyst Simi Bhaumik told Zee Business online, “The market is overall bullish but trading in a broader range of 11,650 to 11,950 levels. My advice to the share market investors is to maintain buy of dips strategy.”
Deepak Jasani, Head of Retail Research, HDFC Securities said, “The Strait of Hormuz, the world’s most sensitive oil-transportation choke point, remains in focus after U.S. and Iranian officials on Thursday said Iran shot down a US military drone near the waterway. The US military confirmed an unmanned drone was shot down by an Iranian surface-to-air missile in what it said was an unprovoked attack in international airspace. Iran’s leadership appears comfortable taking large risks in its engagements, targeting U.S. forces directly rather than sticking to deniable, low-level attacks against third-party targets.”
Realty stocks led the blood bath as the BSE Realty index lost around 1.33 per cent in the early morning trade session. Realty major Sobha Developers share price crashed 6.83 per cent, shares of Godrej Properties dipped 2.86 per cent, Housing Development & Infrastructure counter went down 1.37 per cent, DLF went down 0.94 per cent while Phoenix Mills stocks went down around 0.7 per cent. However, Sunteck Realty shar price went up 1.37 per cent, Oberoi Realty stocks were up 1.3 per cent while Indiabulls Real Estate shares were 0.8 per cent higher.
Auto stocks also had to witness heavy selloff in the morning trade session as the BSE Auto index was down around 1 per cent. Auto major Maruti Suzuki India and TVS Motor Company share price dipped over 2 per cent, Tata Motors stocks went down near 1.4 per cent, Ashok Leyland shares went down 1.3 per cent while Balkrishna Industries, Exide Industries, MRF and Motherson Sumi Systems stocks went down over 0.5 per cent but less than 0.75 per cent.
Among Asian markets, the Japanese Nikkei 25 index went down 0.61 per cent, South Korean Kospi slipped 0.24 per cent, Hang Seng witnessed some fall to the tune of 0.21 per cent and Shanghai Composite went up 0.61 per cent.