After a two-day monstrous rally, BSE Sensex and Nifty were sharply lower
on Thursday, tracking weak Asian stocks. The Sensex fell over 400
points while Nifty slumped below 7,700 levels. Rupee also fell today,
hurting the sentiment in stock markets.
Here are top 10 developments:
1) Analysts say that in the short term Indian markets are likely to take cues from its global peers.
2) Indian markets are likely to remain volatile till the crucial US Fed meet, which is scheduled for September 16-17, say analysts. An interest rate hike in the US could accelerate the selling from foreign investors who would like to park their money in US bonds. Besides, a rate hike in the US would strengthen the dollar, putting further pressure on rupee.
3) Analysts also remain worried about the relentless selling from foreign investors in Indian stock markets. Foreign investors sold a record Rs 16,877 crore worth of domestic stocks in August. On top of that, they sold Indian stocks worth nearly Rs 6,000 crore in the past seven sessions.
4) Domestic institutional investors have been buyers of stocks despite the selloff from foreign investors, helping to provide some support to Indian markets. On Wednesday, they bought shares worth nearly Rs 1,200 crore. But analysts remain wary that domestic institutional investors may find themselves constrained to prop up the markets if the selling pressure from foreign investors does not ease.
5) Traders are also watching the value of the rupee which affects the dollar returns of foreign investors. The rupee traded lower at 66.74/dollar against Wednesday's close at 66.41.
6) After a two-day rally, Asian stocks fell today after US stocks retreated overnight and as Japan machinery orders unexpectedly shrank, deflating investors' appetite for riskier assets. Japan's key gauge of capital spending unexpectedly fell for a second straight month in July, signalling that the economy is struggling to get back on track after contracting in the second quarter.
7) Japan's Nikkei fell nearly 3 per cent while China stocks were down 1 per cent.
8) Also weighing on Asian markets, China's producer prices fell for the 42nd straight month in the latest sign that deflation remains a significant risk for the world's second-largest economy.
9) Overnight, in the US, S&P 500 ended down 1.5 per cent on Wednesday.
10) On Wednesday, Standard & Poor's downgraded Brazil to a junk-grade credit rating, just seven years after it first won an investment-grade rating. Brazil, one of the main commodity exporters to China and a member of the BRICS emerging economies (Brazil, Russia, India, China and South Africa), was until recently seen as one of the main drivers of the global economy.
Here are top 10 developments:
1) Analysts say that in the short term Indian markets are likely to take cues from its global peers.
2) Indian markets are likely to remain volatile till the crucial US Fed meet, which is scheduled for September 16-17, say analysts. An interest rate hike in the US could accelerate the selling from foreign investors who would like to park their money in US bonds. Besides, a rate hike in the US would strengthen the dollar, putting further pressure on rupee.
3) Analysts also remain worried about the relentless selling from foreign investors in Indian stock markets. Foreign investors sold a record Rs 16,877 crore worth of domestic stocks in August. On top of that, they sold Indian stocks worth nearly Rs 6,000 crore in the past seven sessions.
4) Domestic institutional investors have been buyers of stocks despite the selloff from foreign investors, helping to provide some support to Indian markets. On Wednesday, they bought shares worth nearly Rs 1,200 crore. But analysts remain wary that domestic institutional investors may find themselves constrained to prop up the markets if the selling pressure from foreign investors does not ease.
5) Traders are also watching the value of the rupee which affects the dollar returns of foreign investors. The rupee traded lower at 66.74/dollar against Wednesday's close at 66.41.
6) After a two-day rally, Asian stocks fell today after US stocks retreated overnight and as Japan machinery orders unexpectedly shrank, deflating investors' appetite for riskier assets. Japan's key gauge of capital spending unexpectedly fell for a second straight month in July, signalling that the economy is struggling to get back on track after contracting in the second quarter.
7) Japan's Nikkei fell nearly 3 per cent while China stocks were down 1 per cent.
8) Also weighing on Asian markets, China's producer prices fell for the 42nd straight month in the latest sign that deflation remains a significant risk for the world's second-largest economy.
9) Overnight, in the US, S&P 500 ended down 1.5 per cent on Wednesday.
10) On Wednesday, Standard & Poor's downgraded Brazil to a junk-grade credit rating, just seven years after it first won an investment-grade rating. Brazil, one of the main commodity exporters to China and a member of the BRICS emerging economies (Brazil, Russia, India, China and South Africa), was until recently seen as one of the main drivers of the global economy.
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