Global selling pressure in Asian markets amid US corrections

After maintaining a correction in the first two trading sessions of the week, the rally failed and Asian markets were free from heavy selling on Wednesday. The Indian market also fell victim to this. The BSE Sensex was down 710 points or 1.35 per cent at 51,823, while the Nifty was down 226 points at […]
 


Global selling pressure in Asian markets amid US corrections

After maintaining a correction in the first two trading sessions of the week, the rally failed and Asian markets were free from heavy selling on Wednesday. The Indian market also fell victim to this. The BSE Sensex was down 710 points or 1.35 per cent at 51,823, while the Nifty was down 226 points at 15,413. Out of 30 Sensex stocks, 28 stocks showed weakness. While 44 out of 50 Nifty counters closed negative. The volatility index India Weeks registered a marginal increase of 0.75 per cent. Selling was also seen in the broader market. Due to which the market-width remained negative on BSE.

 

Amid strength in the US, Asian markets witnessed heavy selling in global markets on Tuesday. Markets in Hong Kong, Korea and Taiwan fell 2 per cent to 3 per cent. China’s Shanghai Composite also lost 1.2 per cent. European markets lost 2 per cent in the afternoon. Due to which there was no boom anywhere in the Indian market before the closure. A relief for long traders was that Nifty bounced back below 15,400 on an intra-day basis and managed to close above it. According to technical analysts, Wednesday’s low of 13,385 will be an important support for long traders. He should take this level as stoploss and go long during Thursday’s green opening. If Nifty crosses Tuesday’s high of 15,707, there is a possibility of further correction next week.

 

Global markets are also likely to follow suit sooner rather than later in the US. New shorts can be risky even at current levels as the market is technically oversold. The current revamp for delivery based shopping is providing a great buying opportunity. In which IT and Metal counters are being available at a discount of 50 percent or more from their annual peak. Returns of 20-25 per cent are expected in three to six months when the market is stable. Talking about the sectoral performance on Wednesday, the Nifty Metal Index was down 4.9 per cent. Aluminum leader Hindalco shed 6.72 per cent. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent.

 

Shares of metal producers declined due to fall in aluminum prices in the global market. The current correction for Hindalco’s share of delivery based buying is providing a great buying opportunity. In which IT and Metal counters are being available at a discount of 50 percent or more from their annual peak. Returns of 20-25 per cent are expected in three to six months when the market is stable. Talking about the sectoral performance on Wednesday, the Nifty Metal Index was down 4.9 per cent. Aluminum leader Hindalco shed 6.72 per cent. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent. Metal producers’ shares fell on a fall in global aluminum prices. The current improvement to delivery based buying, part of Hindalco, provides a great buying opportunity. In which IT and Metal counters are being available at a discount of 50 percent or more from their annual peak. Returns of 20-25 per cent are expected in three to six months when the market is stable. Talking about the sectoral performance on Wednesday, the Nifty Metal Index was down 4.9 per cent. Aluminum leader Hindalco shed 6.72 per cent. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent.

 

The fall in aluminum prices in the global market led to the fall in the stocks of metal producers. Part of Hindalco in which IT and Metal counters are available at 50% or more discount from their annual peak. Returns of 20-25 per cent are expected in three to six months when the market is stable. Talking about the sectoral performance on Wednesday, the Nifty Metal Index was down 4.9 per cent. Aluminum leader Hindalco shed 6.72 per cent. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent. Metal producers’ shares fell on a fall in global aluminum prices.

 

Part of Hindalco in which IT and Metal counters are available at 50% or more discount from their annual peak. Returns of 20-25 per cent are expected in three to six months when the market is stable. Talking about the sectoral performance on Wednesday, the Nifty Metal Index was down 4.9 per cent. Aluminum leader Hindalco shed 6.72 per cent. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent. The fall in aluminum prices in the global market led to the fall in the stocks of metal producers. Hindalco’s share slipped to 6.72 per cent in aluminum leader Hindalco. Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent. Metal producers’ shares fell on a fall in global aluminum prices. Hindalco’s share slipped to 6.72 per cent in aluminum leader Hindalco.

 

Public sector aluminum producers like Nalco, Hindustan Zinc, Jindal Steel, Vedanta, Tata Steel, NMDC were down over 5 per cent. Metal producers’ shares fell on a fall in global aluminum prices. Hindalco’s share

Rupee. It has fallen 50 percent from its recent high of 636. Apart from metal, energy, PSE, pharma and IT indices also registered significant declines. The Nifty Energy index fell 2.32 per cent. The energy index was down 564 points, with Adani Green Energy down 4 per cent and Reliance Industries 3 per cent. However, shares of oil marketing companies HPCL and BPCL saw a rise of up to 3 per cent. The NSE Pharma index was down 1.32 per cent. Biocon contributed 3.4 per cent. Alkem Lab was down 3.11 per cent, Aurobindo Firma was down 3 per cent and Lupine was down 2.7 per cent. Nifty IT was down 1.2 per cent between the two sides. L&T Technology was down 3.4 per cent, Wipro 3.27 per cent, Mindtree 3 per cent and HCL Tech 2.6 per cent. There was an improvement in TCS and thrust. Mahanagar Gas was the best performer among the NSE derivatives counters, up 2.9 per cent. RBL Bank improved with 2.8 per cent for the second day. Birlasoft rose 2.15 per cent, Vodafone Idea by 1.2 per cent, InterGlobe Aviation by 1.2 per cent, Hero MotoCorp by one per cent and Tata Com by one per cent.

 

Sun TV Network, on the other hand, was down 9 percent. Hind Copper declined 7.34 per cent, UPL 6.2 per cent, Vedanta 6 per cent, Tata Steel 5.28 per cent and Chambal Fertilizers fell over 5 per cent. The broader markets also closed 2,147 negative and 3,184 positive against 3,440 traded securities on the BSE. Sun TV Network, on the other hand, was down 9 percent. Hind Copper declined 7.34 per cent, UPL 6.2 per cent, Vedanta 6 per cent, Tata Steel 5.28 per cent and Chambal Fertilizers fell over 5 per cent. The broad market also saw 2,147 negatives, while 1,184 closed positive against 3,440 traded securities on the BSE. Sun TV Network, on the other hand, was down 9 percent. Hind Copper declined 7.34 per cent, UPL 6.2 per cent, Vedanta 6 per cent, Tata Steel 5.28 per cent and Chambal Fertilizers fell over 5 per cent. The broader markets also closed 2,147 negative and 3,184 positive against 3,440 traded securities on the BSE.