Kolkata: Can the Indian stock market shrug off the investor worries originating from the US debt concerns and the resultant downgrading of credit rating by Moody’s when it opens for trading on Friday, May 23? That’s the moot question after both Sensex 30 and Nifty 50 lost about 0.8% on Thursday.
As things stand on Friday morning, the global cues seem to be positive compared to what it was a day earlier. Most of the Asian markets are trading in the green and two of the three major US indices also closed in the green on Thursday. However, all three key European indices ended May 22 in the red.
Global cues
GIFT Nifty was trading 0.12% up on Friday morning. Among the other Asian key indicators, Nikkei, Hang Seng, Taiwan Weighted, Shanghai Composite and Kospi were trading in the green, while only Straits Times was in the red. In Europe FTSE (0.54%), CAC (0.59%) and DAX (0.51%) ended in the red. Of the US indices, Dow Jones (0.08%) and Nasdaq (0.28%) ended in the green while S&P500 ended in the red (0.04%).
US debt worries and credit rating downgrade
Weighed down by global cues that could be traced to concerns about unsustainable debt levels of the world’s largest economy, the US, global markets wee majorly in the red, on Thursday (May 22), both Sensex 30 and Nifty 50 lost significantly with Sensex climbing down 644.64 points or 0.79% to end the session at 80,951.99 points, while Nifty 50 ended the day at 24,609.70 points, down 203.75 points or 0.82%. At one point in the afternoon, Sensex was down aby about 1,000 points.
Among the prominent laggards featured M&M, ITC, Bajaj Finserv, Tech Mahindra and among the gainers were IndusInd Bank, Bharti Airtel, and UltraTech Cement.
On Thursday, the Indian Rupee dipped 36 paise against the US Dollar to close at 85.95. There was marked demand for dollars from importers as well as foreign banks. The prices of US bonds came down leading to a surge in yields and it unnerved global investors. Also a narrowing down of the yield differential between Indian and US securities take the shine off Indian assets. There was an upward pressure on crude oil prices, which is a perennial damager of investor sentiments.
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While Gift Nifty was trading in the green on Friday morning, all the Asian indices with the sole exception of Straits Times of Singapore were i n the green. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
