Metal stocks pull Sensex and Nifty down over 1% amid global market concerns

Sensex and Nifty was dragged down on Friday morning by metal stocks, which were weighed down by a stronger US dollar and uncertainty over China’s stimulus plans. 

At 10.26 am, the Sensex was down 926 points or 1.14 per cent at 80,363., and the Nifty was down 283 points or 1 per cent at 24,265.

Vikas Jain, Head of Research at Reliance Securities, said that the markets were down “driven by weakness in global markets and concerns over recent Foreign Institutional Investors (FII) selling. The GIFT Nifty is down by 104 points, or 0.4%. The US markets fell by over 0.5% yesterday due to profit booking, mixed economic data, and anticipation ahead of the US Federal Reserve’s interest rate decision next week,”

Asian markets are showing a mixed trend, while European markets saw a 25 basis point rate cut by the European Central Bank to 3 per cent, as expected. However, domestic sentiment remains positive due to a cooling inflation rate, which dropped to 5.48% from a 14-month high of 6.21%. Additionally, encouraging October IIP data, which reached a three-month high, along with hopes of the US Fed cutting interest rates next month, should support market sentiment. The Reserve Bank of India (RBI) has kept interest rates unchanged for nearly two years, and there is growing expectation that the new RBI governor may adopt a more dovish stance on monetary policy, potentially easing rates early next year. “As a result, it is expected to present a good buying opportunity at lower levels, with a focus on stock-specific actions,” Jain said.

Top gainers on the NSE as of 9.30 am:

Bharti Airtel (0.57%), BPCL(0.55%), Adani Enterprises (0.53%), Adani Ports (0.26%), Eicher Motors (0.22%)

Top losers:

Tata Steel (-2.65%), JSW Steel (-2.39%), Shriram Finance (-2.19%), Hindalco (-1.71%), IndusInd (-1.63%)