Domestic equity benchmarks Sensex and Nifty settled lower for the second consecutive session on August 11 amid weak global cues with the dollar’s rise against its major global peers after the US inflation came in steady. US consumer prices rose moderately last month which raised hopes that the US Fed will leave interest rates steady next month.
Sensex opened 40 points higher at 65,727.80 against the previous close of 65,688.18 but soon slipped into the red and traded in the negative territory for the rest of the session. The index fell 414 points to hit the intraday low of 65,274.61. The Nifty50 hits its intraday low of 19,412.75.
‘’The domestic market continued to experience selling pressure, with banking stocks extending their decline in reaction to the RBI’s liquidity absorption measures. The escalating concerns about inflation further weighed down domestic market sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Sensex closed 365.53 points, or 0.56 per cent, lower at 65,322.65 while the Nifty closed the day at 19,428.30, down 114.80 points, or 0.59 per cent. Mid and smallcaps also fell but they still outperformed the benchmark. The BSE Midcap index ended 0.13 per cent lower while the Smallcap index ended with a loss of 0.31 per cent. For the week, Sensex lost 0.6 per cent while Nifty declined 0.45 per cent.
Commenting on today’s market performance, Ajit Mishra, SVP – Technical Research, Religare Broking said, ‘’Markets traded under pressure and lost over half a percent, in continuation to the prevailing corrective tone. After the initial fall, Nifty hovered in a range but selling pressure in the final hours pushed the index further lower.”
‘’Eventually, it settled closer to the day’s low at 19,428.30 levels. Most sectors traded in sync and ended in the red wherein pharma, financials and FMCG were among the top losers. The broader indices too drifted lower and lost nearly half a percent each,” said Mishra.
