New Delhi: Domestic Equities saw downward pressure following the global peers amid weak economic data and a downgrade in US sovereign credit rating, says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
“Going ahead, markets could remain subdued given the gloomy global environment. Stock-specific action is likely to continue in the market with the ongoing result season,” he said.
Nifty opened lower and witnessed profit booking throughout the session to close with a loss of 219 points (-1.1 per cent) at 19,514.
India’s VIX sharply rose by 10 per cent indicating volatility in the market. The broader market too faced the brunt with Nifty midcap 100 and small cap 100 down more than 1 per cent, he said.
All sectors ended in red with PSU Bank, Metals, and Auto being the top losers.
Globally, markets, including Indian Equities came under pressure after Fitch Ratings downgraded the US sovereign credit rating from AAA to +AA.
Further, weak economic data from the US, Eurozone, and China dampened investors’ sentiments.
However, strong GST collection in the month of July and a surge in domestic core output data kept the downside in check.
Vinod Nair, Head of Research at Geojit Financial Services said the Indian market witnessed a broad sectoral slide, affected by weak global market trends. Negative news regarding the US rating downgrade on fiscal concerns, coupled with weak factory activity data from Eurozone and China, led to widespread worries across the globe.
Additionally, prolonged FII selling, triggered by a rise in US bond yields, has disrupted the mood of the domestic market, he said.