market updateEquity markets fell sharply in afternoon trade on Friday on heavy selling in IT, PSU banks, auto stocks following weak Asian markets amid concerns of a global slowdown. At 2.10 pm, the Sensex was down 1050.03 points or 1.75 per cent at 58,883.98 and the Nifty was down 326.56 points, or 1.83 per cent, at 17,550.85.
Mahindra & Mahindra, Tech Mahindra, UltraTech Cement, TCS, Infosys, Wipro were the major losers in the Sensex during the afternoon trade. The Nifty IT and BSE IT indices were down 2.91 per cent and 2.69 per cent, respectively. The Nifty PSU Bank index was down 2.79 per cent and BSE Auto was down 3.25 per cent.
“Indian equity markets are seeing some selling pressure after a long period of resiliency. Global cues continue to remain weak as dollar index bounces sharply and US bond yields followed US inflation numbers. We are outperforming Can continue, but we can.” Do not stay in isolation for long. Global markets look nervous ahead of FOMC meeting as there is talk of 100 bps hike while 75 bps hike was already discounted,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Asian markets remained weak on Friday on rising fears of a global recession following warnings from the World Bank and the International Monetary Fund. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent. Australian shares were down 0.94 per cent on Friday, while Japan’s Nikkei stock index slipped 1.2 per cent. The World Bank said the world could head towards a global recession in 2023 as central banks around the world continue to raise interest rates to combat inflation.
The economies of the US, China and the euro area were slowing down and a slight blow to the global economy would lead to recession. “Technically, Nifty is facing resistance at 18,100 levels and has slipped below its 20-DMA of 17,700, which could lead to some more selling pressure, where 17,470-17,400 is an immediate demand zone then 17,150 There is a sacred support level. Bank Nifty is outperforming but yesterday it ended a day low after hitting a new all-time high, which is a bit disappointing. On the downside, 40,900-40,700 is an immediate demand zone, Beneath this, 40,270 is the next important support level,” added Meena.
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