Mumbai:
Indian equities opened in the red this morning, a day after the markets saw a record rally due to major geopolitical developments, including India and Pakistan agreeing to a ceasefire and the US and China striking a trade deal.
The benchmarks were already down in the pre-market hours, with Sensex losing over 400 points. The losses expanded over time. Sensex, which represents the top 30 companies listed with the Bombay Stock Exchange, was down over 800 points at 10 am. NSE Nifty50 lost 200 points in the first hour.
Heavyweights like Infosys, Eternal (Zomato), and HCL Tech were the top losers in the Sensex pack, while Sun Pharma, Tech Mahindra, and SBI Bank were among the gainers.
Experts suggest that the benchmarks will likely consolidate after Monday’s whopping gains. It is being anticipated that buyer interest will continue in small and mid-cap stocks at lower levels, said Devarsh Vakil, Head of Prime Research at HDFC Securities.
Hardik Matalia, Derivative Analyst, Choice Broking, advised traders to avoid large overnight positions and enforce tight risk controls due to the current global uncertainties.
Most Asian stock markets were trading in the green too, including Tokyo, Bangkok, Seoul, and Shanghai. Only Hong Kong was in red.
The markets had rallied over 3.5% the previous day, with Sensex rising nearly 3,000 points. Nifty had added another 917 points. Even Asian stocks performed well and contributed to the global gains.
Later in the evening, US markets posted a solid rise as the two economic superpowers appeared to step back from a punishing trade war. The Dow Jones Industrial Average jumped 2.8% while S&P 500 went up 3.3% and the tech-focused Nasdaq Composite Index ended 4.4% higher.
