Sensex slumps nearly 400 points. What analysts say on today's market action2 min read . Updated: 20 Aug 2020, 06:30 PM IST
- Private sector lenders HDFC Bank Ltd and Axis Bank Ltd settled over 2% lower and were among the top losers.
Indian stocks markets fell sharply today amid weak global markets after the US Federal Reserve minutes showed policymakers remained doubtful about a swift rebound in recovery in the world's largest economy. The blue-chip NSE Nifty 50 index closed down 0.84% at 11,312.20 while the and the S&P BSE Sensex slumped around 400 points.
Financial stocks lost the most, with the Nifty Financials index and Nifty private bank index closing down 1.31% each. Private sector lenders HDFC Bank Ltd and Axis Bank Ltd settled over 2% lower and were among the top losers.
Bucking the trend, state-run firms advanced with the Nifty public sector enterprise index rising 2.63%, helped by a 13% jump in hydropower generator NHPC Ltd.
What analysts said on today's market action:
Ajit Mishra, VP - Research, Religare Broking Ltd
"Markets ended with a cut of nearly a percent, pressurized by weak global cues. The reaction came in response to the US Fed statement as they signalled uncertainty over growth recovery from the COVID impact. Interestingly, the broader markets continued its outperformance and ended with decent gains in the range of 0.7-0.9%. On the sector front, Banking, Finance and Energy were the top losers which impacted market sentiments while Power, Metals and Realty manage to end higher.
The benchmark index has been gradually inching higher amid positive yet volatile global markets. And, we do not see this scenario changing any time soon. At the same time, noticeable traction in the broader space is offering ample opportunities to the traders. We reiterate our view to focus more on the selection of stocks and trade management citing overnight risk."
Vinod Nair, Head of Research at Geojit Financial Services
"Indian indices along with global markets traded in the red today, on the back of US Fed reserve’s grim July meeting minutes. The Fed reserve cast doubts on the nascent recovery of the labor market seen in the previous months and its sustainability. Markets, globally, were banking on expectations of steady recovery in the major economies and the consequent return to normalcy for businesses. Although there was nothing new in the minutes, markets reacted negatively to it. Most sectoral indices were in the red, with the banking index leading the losses. Investors advised to remain cautious and another round of losses, similar to today, can bring in negativity into the markets."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The support of 11200 has been respected upon the closing of the Nifty, hence I would not advocate closing long positions or initiating short positions. We would need to study market movements over the next couple of days in order to detect its trend. The bias is still on the upside and we could continue waiting for a 11500 target. That target would get negated only if 11100-11200 breaks upon closing." (With Agency Inputs)
Never miss a story! Stay connected and informed with Mint. Download our App Now!!