Indian market erases early gains


Indian market indices were weak on Monday ahead of the Union Budget.  Nifty50 ended the day at 12,119-mark, down 129 points or 1.06 percent. In the intra-day trade, the index plunged 141 points to hit a low of 12,107. Sectorally, all the key indices closed in the red barring Nifty Pharma index, which was up 1.4 percent. The Nifty Metal index was the top loser, down 3 percent followed by Nifty PSU Bank down by 2 percent and Nifty Bank index down by 1 percent.

US market also falls with the Dow Jones Industrial Average siding off 453.93 points, or 1.6%, to 28,535.80. The Nasdaq Composite Index COMP shed 175.60 points, or 1.9%, to reach 9,139.31, after hitting a low at 9,088.04.

Shares in Asia declines again today as concerns over the spreading of Coronavirus hovered. South Korea’s Kospi dropped 3.2% while in Japan, the Nikkei 225 shed 0.83% while the Topix index declined 0.74%. Meanwhile, shares in Australia also declined, as the S&P/ASX 200 dropped 1.5%. Overall, the MSCI Asia ex-Japan index traded 0.91% lower. Markets in China and Hong Kong are closed on Tuesday for holidays.

Domestic market indices inched up today however it is volatile. The broader Nifty50 index was hovering around 12,140 levels, up 30 points or 0.25 percent. The Nifty sectoral indices were trading mixed. Nifty Fin Service and Nifty Auto indexes, both up 0.7 percent, gained the most. On the other hand, the Nifty Metal index dipped further 0.5 percent. In the broader market, the S&P BSE MidCap index gained 30 points or 0.2 percent, and the S&P BSE SmallCap index surged 80 points or 0.53 percent.

Oil prices have stabilized since yesterday with WTI Sweet Crude quoting around $53/bbl while the Brent Crude is quoting around $58.4/bbl.

Disclaimer: represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose


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