Many stocks (Nifty 50) opened deep into the red on August 26 following US Fed chairman Jerome Powell’s hawkish stance in regards to inflation.
Tech Mahindra was the top loser in the markets, followed by Infosys, HCL Tech and Wipro. TCS and Hindalco along with JSW Steel were also top losers in the markets.
Of the 50 stocks in the market today, only four remained relatively unscathed by the plunge in the market. The Nifty plunged 384 points while Sensex dropped by 1,134 points in response to sharply fluctuating markets in the US and Asian regions.
More pain for IT cos’ US pain with these nifty 50 stocks
In Jackson Hole, Powell said that the cost of reducing inflation will bring “some pain to households and businesses” in the US. There was a discussion of US GDP, as well as other economic implications.
NASDAQ Composite, Dow Jones Industrials and S&P 500 fall: pain for IT cos ahead
“US Federal Reserve statements post the Jackson Hole symposium indicated the central bank’s strong commitment towards controlling inflation over growth. In cues for major central banks across the world, US Federal Reserve Chair Jerome Powell said that inflation is likely to remain higher for a longer period and thus require an aggressive stance” said Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services.
“US equity markets have fallen more than 3%,” said Khemka before the opening bell. “Indian markets are also likely to react negatively today with increasing volatility over the next few days,”
Minutes after OPEC decided to cut production, oil prices rose. The price of Brent Crude rose 1.15% to $100 per barrel.
Shares of Reliance Industries will be in focus today, with business events scheduled for the day. The company’s shares were down 0.5% on opening day before the stock market opens at 2 pm.
A difficult situation may occur, say experts
Trading this week is expected to be jam-packed.
“In the first part of the year, GDP growth and manufacturing PMI will be critical to help gauge the health of domestic economic,” said Apurva Sheth, head of market perspectives at Samco Securities. In the global sense, markets can cause volatility as investors are paying close attention to crucial events in US initial jobless claims and unemployment.
Certain trading volumes will be decreased in the week because of the holiday of Ganesh Chaturthi on August 31.