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Indices Fall as Global Trends and Investor Sentiment Weaken
In early trade on Monday, September 9, 2024, equity benchmark indices took a hit, mirroring the decline seen in global markets and reacting to foreign fund outflows. The 30-share BSE Sensex fell by 281.74 points, settling at 80,902.19, while the NSE Nifty decreased by 81.45 points to 24,770.70.
Among the Sensex constituents, notable laggards included Adani Ports, Tata Steel, NTPC, Power Grid, Mahindra & Mahindra, and Tata Motors. Conversely, Hindustan Unilever, Asian Paints, Infosys, and Tata Consultancy Services managed to post gains despite the overall market downturn.
Asian markets followed suit, with Seoul, Tokyo, Shanghai, and Hong Kong all trading lower. This trend was further exacerbated by the U.S. markets' significant decline on Friday, driven by concerns over a potential economic slowdown and weaker-than-expected jobs data, which reignited recession fears.
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, noted, “The shift from optimism about cooling U.S. inflation to apprehensions over a possible economic slowdown has taken a toll. The weaker-than-expected jobs data and soft manufacturing updates have added to the market’s bearish sentiment.”
Foreign Institutional Investors (FIIs) also contributed to the downturn, offloading equities worth ₹620.95 crore on Friday. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted two key factors influencing the markets: the upcoming U.S. presidential elections and the Federal Reserve's decision on interest rates.
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