Markets pare gains on weak Asian cues

By: |
March 9, 2021 3:00 AM

Deepak Jasani, head – retail research, HDFC Securities, said: “Asian shares broadly reversed course to trade lower as higher crude oil prices raised inflation worries and offset optimism over the passage of a $1.9-trillion US stimulus bill.”

The broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 rising by 0.82% and 0.03%, respectively.The broader markets outperformed the benchmarks, with the Nifty Midcap 100 and Nifty Smallcap 100 rising by 0.82% and 0.03%, respectively.

The markets on Monday ended marginally higher after stocks pared their gains because of weak cues from the Asian markets. The rise of crude oil prices after geopolitical tensions in the Gulf also made investors dump risky assets. The Nifty rose 18.1 points (0.12%) to close at 14,956.2 while the Sensex gained 35.75 points (0.07%) to 50,441.07.

The markets witnessed a strong opening, but fell on selling pressure after the markets took cues from their Asian peers. The markets were reacting to the surge in crude oil prices after the geopolitical conflict in the West Asia. This made investors jittery as it sparked fears of a rise in inflation. This offset the optimism in the global markets on the likely passage of a $1.9-trillion fiscal stimulus in the US.

Deepak Jasani, head – retail research, HDFC Securities, said: “Asian shares broadly reversed course to trade lower as higher crude oil prices raised inflation worries and offset optimism over the passage of a $1.9-trillion US stimulus bill.”

Brent crude was trading at $69.62 per barrel on late Monday evening.

Stock markets in South Korea, Hong Kong and China declined by 1% to 2.3%. The markets in the UK, France, and Germany were up between 0.06% and 1.2%.

Domestic markets were dragged by the selling in financials whereas index heavyweight Reliance Industries as well as IT stocks supported the market.

Foreign portfolio investors bought stocks worth $750.02 million in March so far. On Friday, they sold stocks worth $246.9 million. The flows from foreign portfolio investors have been impacted on account of increased volatility in the stock markets after bond yields globally have started seeing a spike. This is unlikely to trigger a huge selloff in the Indian markets, according to experts.

The biggest gainers on the Nifty were Tata Motors, M&M, Wipro, Adani Ports and SEZ, and Hero Motocorp, up by 5.16%, 4.58%, 4.49%, 4.09%, and 4.02%. The biggest losers were ONGC, HDFC, Dr Reddy’s Laboratories, Powergrid Corporation and Coal India, down by 2.56%, 1.19%, 1.01%, 0.64% and 0.45%.

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