Indian shares open lower tracking sell-off in global peers
Updates at 9:19 a.m. IST
BENGALURU, Aug 2 (Reuters) - Indian shares opened lower on Friday, tracking a sell-off in global peers, after weaker-than-expected U.S. data sparked concerns of a slowdown in the world's largest economy.
The NSE Nifty 50 .NSEI fell 0.82% to 24,805.7 points as of 9:19 a.m. IST, while the S&P BSE Sensex .BSESN shed 0.84% to 81,196.52.
All the 13 major sectors logged losses. The broader, more domestically focussed small- .NIFSMCP100 and mid-caps .NIFMDCP100 dropped 1% each.
India's Nifty 50 and S&P BSE Sensex had logged gains in the last four sessions, rising about 0.7% each over the period.
Asian markets fell on the day, with the MSCI Asia ex-Japan index .MIAPJ0000PUS losing 2.3%. Wall Street equities slid overnight after weak U.S. manufacturing and labour market data sparked fears of a worsening economic outlook.
While the Federal Reserve had signalled on Wednesday thatthe rate cut could begin from September, the odds of a 50 basis point rate cut next month haverisen to 31.5% from 11.8% after the latest data, according to CME FedWatch.
Investors now await thenonfarm payroll data due later in the day to gauge the health of the U.S. labour market.
"Investor sentiment has turned nervous in the United States on the possibility of a recession after Thursday's data," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
"This will have an impact on the Indian market too, as the rally in India has been sustained more by liquidity than fundamentals," Vijayakumar added.
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
