Global worries subdue indices; metal stocks lose shine

Mumbai, Aug 20 (SocialNews.XYZ) Negative global cues subdued India's key equity market indices on Friday.

Initially, the market indices' had a gap down opening, in line with losses in the Asian markets. The two key indices later tried to recover, however, this trend failed to hold on.

Globally, shares fell for the fifth straight day and the dollar remained firm in a flight to safety on Friday as the Covid-19 pandemic compounded concerns over Chinese growth and the outlook for US stimulus.

Sector-wise, metals, capital goods and realty stocks fell the most, while FMCG was the only gainer.

Consequently, the S&P BSE Sensex closed at 55,329.32, lower by 300.17 points or 0.54 per cent from its previous close.

Similarly, the NSE Nifty50 also ended the day's trade lower, falling to 16,450.50, lower by 118.35 points or 0.71 per cent from its previous close.

"Nifty snapped a two-week winning streak and ended lower by 0.48 per cent on Friday. In the process, it formed a doji like pattern on weekly charts, suggesting indecision at higher levels," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Global worries (Fed withdrawing stimulus, Delta variant spread, slowing global growth and China's regulatory tightening) are impacting the sentiments of the investors in India," Jasani added.

Vinod Nair, Head of Research at Geojit Financial Services, said, "Bears took control of today's volatile session as weak cues from the global markets triggered selling across all sectors, except FMCG.

"Fast spreading delta virus, Fed's taper plans and China's ongoing regulatory crackdown forced global markets to trade with cuts. Though the selling was broad-based, metal stocks were the most-affected due to a sharp plunge in iron ore futures across the world."

Source: IANS