Global headwinds continue to drag equity markets down

• Sensex slipped around 1.3% to 58,766 points and Nifty50 went down 1.2% to 17,542 on Thursday.
• IT, metal and oil & gas were the biggest losers in the market with Reliance Industries, TCS, and ONGC being among laggards.
• Also the fact that India’s GDP grew below estimates at 13.5% percent in April-June quarter weighed on the market sentiment.

Indian markets continued their losing streak following negative global cues related to concerns around economic growth.

Sensex slipped by around 1.3% to 58,766 points and Nifty50 went down by 1.2% to 17,542 in Thursday trade.

IT, metal and oil & gas were the biggest losers in the market with Reliance Industries, TCS and ONGC making it to the list.

Weak global cues and rise in China-Taiwan tensions had softened global markets. Experts believe that markets are influenced by global headwinds despite strong FII flows.

“The Indian equity markets are witnessing high volatility as global cues are weak but our market is not ready to go down where every dip is taken as a buying opportunity. FIIs are in a buying mood despite the rise in the dollar index and US bond yields whereas the rupee has gained remarkably in the last two trading sessions,” Santosh Meena, head of research at Swatika Investmart said.

India’s GDP growth for the April-June quarter came below estimates at 13.5% percent, yesterday. That too weighed on the market sentiment and the domestic markets started the new month on a volatile note, and have been swinging wildly for the last few days.

“Strong macro data, along with positive institutional flows have helped provide support at lower levels. Also action continues in mid and small caps with niche sectors doing well. Auto, cap goods, defence, consumption, real estate, healthcare stocks are in strong momentum which is likely to continue,” Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services said.

Top losers	% change
Hindalco Industries	3.64%
Reliance Industries	2.80%
ONGC	2.67%
TCS	2.34%
Sun Pharma	2.25%
SBI Life Insurance	2.21%

Ambareesh Baliga, an investment analyst said that investor interest will depend on where Nifty50 stands. He believes that markets will remain under pressure as inflation has not cooled off as yet.

“Looking at the set of headwinds and global market I don’t know how long our markets can independently hold up. As long as the Nifty50 is above 17,000 points there will be investor interest but then if it goes to 16,000 or 15,00 the interest in the market will disappear,” Baliga said.

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