Sensex trades lower on negative global cues

Mumbai: Indian equity indices opened in the deep red on Monday following negative cues from Asian peers.

At 9.42 a.m., Sensex was down 1,509 points or 1.86 per cent at 79,460 and Nifty was down 465 points or 1.88 per cent at 24,252.

The market trend remains negative. On the National Stock Exchange (NSE), 110 shares are trading in the green and 2,126 shares in the red.

Selling pressure is also being seen in small and medium stocks. Nifty midcap 100 index is down 1,677 points or 2.90 per cent to 56,236 and Nifty smallcap 100 index is down 598 points or 3.18 per cent to 18,202.

Almost all the indices are trading in the red. Auto, IT, PSU Bank, Fin Service, Realty, Energy and Infra are major laggards.

Hardik Matalia, Research Analyst at Choice Broking said, "The global market witnessed sharp selling pressure as there is a fear that the United States is heading to a recession."

"After a gap down opening, Nifty can find support at 24,300 followed by 24,250 and 24,200. On the higher side, 24,500 can be an immediate resistance, followed by 25,600 and 25,650," he added.

In the Sensex pack, Tata Motors, Maruti Suzuki, JSW Steel, Tata Steel, Power Grid and Reliance are the top losers. Sun Pharma, HUL, Asian Paints and Nestle are the top gainers.

Another expert said, "The rally in the global stock markets has been driven mainly by consensus expectations of a soft landing for the US economy. This expectation is now under threat with the fall in the US job creation in July and the sharp rise in the US unemployment rate to 4.3 per cent. Geopolitical tensions in the Middle East also are a contributing factor."

The foreign institutional investors (FIIs) sold equities worth Rs 3,310 crore on August 2, while domestic institutional investors bought equities worth Rs 2,965 crore on the same day.