Sensex Struggles Amid Weak Global Markets, Axis Bank Slumps

BSE Sensex and Nifty struggled today amid weak global markets. The Sensex fell over 150 points while Nifty slipped below crucial 8200 levels.

Axis Bank was the biggest loser amid Nifty stocks, slumping over 7 per cent on concerns over its asset quality. The private sector lender announced its Q2 earnings yesterday. “Although loan slippage for Axis Bank in 2QFY16 was lower at 0.8 per cent, it sold two standard power sector accounts amounting to Rs 1,820 crore at a heavy loss of 64 per cent,” brokerage Nirmal Bank said in a note.

Selling pressure was seen in oil & gas stocks amid a slide in global crude prices. Cairn India fell over 2 per cent while ONGC declined over 1 per cent.

Capital goods stocks were also under pressure with L&T and BHEL down over 0.5 per cent.

Analysts say that if Nifty falls below the support levels of 8160-70, then the selling pressure could accelerate. And markets are likely to be volatile ahead of the derivatives contract expiry tomorrow.

Foreign institutional investors have emerged as strong buyers of Indian equities so far this month, supporting the market rally. They have bought Indian equities worth nearly Rs 5,000 crore so far this month.

The rupee weakened to 65.08/dollar today as compared to its previous close of 64.97.

Traders are cautious ahead of the Federal Reserve’s policy panel meet, which ends later today. Though many analysts don’t see the Fed raising the rates this year they say that markets may react depending on how the US central bank’s policy statement interprets recent soft US economic data and events in global financial markets.

Asian stocks slipped on Wednesday, taking cues from an overnight decline on Wall Street and capped by caution ahead of a policy statement from the US Federal Reserve due later in the day.

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Source:Ndtv

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