On a late September morning in 2021, Indian equities opened lower, slipping back from record highs set only days before. Banking and technology stocks, already weakening, pushed the Nifty 50 and Sensex further down as investors weighed a turn in the world's monetary tide. It is a small tremor in a longer story of markets that climb on hope and then pause to reckon with the cost of money, inflation, and the fragility of recovery.
Indian Shares Slip From Record Highs as Banking and Tech Stocks Extend Losses
Both indexes had set their peaks just days earlier
Mark
So the Indian market opened lower on Wednesday. How far did it actually fall?
Mimi
Not dramatically. The Nifty 50 was down 0.51% at 17,657.95 and the Sensex was down 0.62% at 59,296.54, as of 0344 GMT. What stands out is that both are retreating from record highs set only last week.
Luke
Worth saying that these are early-trade figures. The report doesn't tell us where the day closed, so we can't call this a lasting trend.
Mark
Which sectors were driving it?
Mimi
Tech and banks. Tech fell for a third straight session, with Infosys down 1.7%. The bank sub-index slid 0.9%, led by ICICI Bank, down 1.4%.
Mark
And the reasons?
Mimi
Mostly global. Investors are uneasy about a scheduled tightening of U.S. monetary policy and about persistent inflation, and U.S. Treasury yields soared.
Luke
The report links those factors to market sentiment generally. It doesn't show that they caused the specific moves in Infosys or ICICI Bank, so that connection is an inference.
Mark
What about Evergrande?
Mimi
The risk of a China Evergrande default persisted, and Asian shares were lower on doubts about the pace of global recovery.
Luke
Right, but how much each factor mattered is unknown. The report lists them without ranking them.
O Pulso
- The Nifty 50 slipped 0.51% to 17,657.95 and the Sensex fell 0.62% to 59,296.54 in early trade, pulling away from peaks reached just days earlier.
- Tech stocks fell for a third straight session, with Infosys sliding 1.7% and leading losses among Nifty constituents.
- Banks kept sliding as the banking sub-index dropped 0.9% and ICICI Bank shed 1.4%, adding weight to the downturn.
- Fears of U.S. monetary tightening, rising Treasury yields, and persistent inflation are rattling investors across Asia.
- Traders are watching whether the slide continues and how the Evergrande default risk and U.S. policy moves unfold.
On a late September morning in 2021, Indian equities opened lower, slipping back from record highs set only days before. Banking and technology stocks, already weakening, pushed the Nifty 50 and Sensex further down as investors weighed a turn in the world's monetary tide. It is a small tremor in a longer story of markets that climb on hope and then pause to reckon with the cost of money, inflation, and the fragility of recovery.
Indian shares opened lower on Wednesday, September 29, 2021, giving back ground won in the days just before. Both the Nifty 50 and the Sensex had set record highs only recently, and now the early losses deepened a pullback already in motion.
By mid-morning Asian time, the Nifty 50 stood down about half a percent, while the Sensex had dropped a little more. The weakness sat chiefly in two places. Technology stocks fell for a third straight session, with Infosys leading the losses among the benchmark's largest companies. Banks, too, kept slipping, with ICICI Bank among the heaviest decliners.
The unease did not begin in Mumbai. Investors were nervous about the scheduled tightening of U.S. monetary policy and about inflation that refused to fade. Those anxieties pushed U.S. Treasury yields higher, and the rise rippled across markets far from Washington. Shares across Asia also softened as doubts resurfaced about how steadily the global economy would recover, while the possibility of a Chinese property developer, Evergrande, defaulting kept nerves raw.
For now, the question hanging over traders is whether the slide in technology and banking shares will continue. Their eyes are fixed on American policy, the path of bond yields, forthcoming inflation data, and any news from Evergrande.
Indian shares opened lower on Wednesday, September 29, 2021, slipping further from the record highs they reached the week before. Banking and technology stocks, which had already been falling, extended their losses in early trade.
By 0344 GMT, the blue-chip NSE Nifty 50 index was down 0.51% at 17,657.95. The benchmark S&P BSE Sensex had fallen 0.62% to 59,296.54. Both indexes had set their peaks just days earlier, so the morning's decline added to a pullback that was already underway.
Technology stocks were among the weakest areas. The sector fell for a third straight session, and Infosys Ltd dropped 1.7%, the biggest loss among Nifty 50 constituents. Banks also continued to slide, with the banking sub-index down 0.9%. ICICI Bank lost 1.4%, the steepest fall within that group.
The pressure came partly from outside India. Investors were uneasy about economic uncertainty ahead of a scheduled tightening of U.S. monetary policy, and concern about persistent inflation was deepening. Together, those worries sent U.S. Treasury yields soaring, which weighed on sentiment well beyond Indian markets.
The weakness was regional as well. Shares across broader Asia traded lower as doubts about the pace of the global economic recovery re-emerged. The risk of a default by China Evergrande also persisted, adding to the cautious mood among investors.
What to watch next is whether the slide in tech and banking stocks continues, and how markets respond to the U.S. tightening, the direction of Treasury yields, inflation readings and any developments around Evergrande.
Quer a matéria completa?
Leia o original em Reuters ↗
Economy & Finance