02:20 pm FII View:
European markets are responding negatively on the unsettling confidence in global trading and deep scars in the emerging Asian markets, says Guy Stear, Head of Credit Research and Emerging Markets Strategy, at Societe Generale CIB.
France’s CAC, Germany’s DAX and Britain’s FTSE were down more than 1 percent, trimming some initial losses.
Speaking to CNBC-TV18, Stear says India’s problem is that Fedral Reserve’s interest rate cut and a stronger dollar would raise questions on the ability of companies paying back in dollars.
He sees a further fall in US market and the biggest trouble coming from the Fed’s uncertainty of a September rate hike, as America’s domestic economic growth sentiment is good, but the global stock markets turbulent, which is essentially a leading indicator of economic growth.
02:00 pm Market Check
The market declined marginally amid consolidation, dragged by banking & financials, FMCG, capital goods and select pharma stocks. However, the consistent buying in oil, technology and select auto stocks capped the downside.
The Sensex dropped 109.29 points to 25923.09 and the Nifty fell 25.80 points to 7854.90. About 1341 shares have advanced, 1173 shares declined, and 92 shares are unchanged on the BSE.
Mahindra & Mahindra, Hero Motocorp and Bharti Airtel topped the selling list on Sensex, down around 3 percent followed by HDFC, ITC, SBI, ICICI Bank, L&T and Axis Bank with 1-2 percent loss.
However, TCS, Reliance Industries, Tata Motors, Bajaj Auto, Wipro, ONGC, Coal India, NTPC and GAIL gained 1-3 percent.
Meanwhile, the rupee recovered from day’s low, trading at 66.08, up 2 paise.