Home / Business / Money / Sensex, Nifty, Midcap under pressure; bank, oil stocks drag

Sensex, Nifty, Midcap under pressure; bank, oil stocks drag


TheNewsInternational Team

10:15 am Japanese machinery order:

Japanese machinery orders unexpectedly fell for a second straight month in July, fueling concerns that weak business investment could undermine a recovery from an economic contraction in the second quarter.

Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, fell 3.6 percent in July, the Cabinet office data showed on Thursday.

That followed a 7.9 percent month-on-month decline in June and were far worse than a 3.7 percent increase expected by economists.

The weak data comes as a recent run of soft indicators cast doubt on the Bank of Japan’s optimism that a steady economic recovery will help bring inflation to its 2 percent goal by around September 2016, keeping the bank under pressure to act.

Sluggish spending by firms and persistent weakness in private consumption and exports add to worries about slowing growth in China – Japan’s biggest trading partner – which has unnerved global investors.

10:00 am Market Check

The market remained under pressure in morning trade with the Sensex falling 370.51 points or 1.44 percent to 25349.07, dragged by banking & financials, auto, oil, capital goods and FMCG stocks. The Nifty continued to hover around 7700, down 118.45 points or 1.51 percent to 7700.15.

The broader markets, too, plunged 1.5 percent as about 1370 shares have declined against 355 shares advanced on the Bombay Stock Exchange.

At the moment, 7500 looks like the Nifty bottom, though one does not know how market will behave in the face of volatility, says market expert Ambareesh Baliga.

At the same time if one sees to 15 percent gains during a bounce, one must book out, says Baliga. “Then sit on cash until there is a crack again.” He expects the bull run to be steady after 2-3 months depending on Fed statement.


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...