Stock Market Update: As investors fled risky assets due to an increase in Covid cases in China that resulted in the strengthening of strict regulations, Indian equities indexes fell on Monday, extending losses for the third straight day.
The wide NSE Nifty index sank 147.70 points, or 0.81 percent, to conclude at 18,159.95, while the BSE Sensex index dropped 518.64 points, or 0.84 percent, to end at 61,144.84.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “the excitement caused by the recent decrease in US inflation has run its course and the market is likely to wait for further data on the trajectory of US inflation and interest rates.”
Wealth Management at Standard Chartered Bank
After a spike in Covid cases in China, which was supposed to be a test case for loosening stringent regulations, risky assets suffered. Residents have been instructed to stay at home for five days while schools and universities have been shut down.
The latest cases of Covid infections and deaths in China present a challenge to the government and dash hopes of an early easing in stringent restrictions, according to Steve Brice, Chief Investment Officer for Wealth Management at Standard Chartered Bank, who spoke to Bloomberg.
According to Mr. Brice on Bloomberg Radio, “we’ve seen a very strong rally in China markets in recent times” due to hopes for an easing of restrictions. Investors will therefore be keenly interested to see how the market responds.
Stock Market Update: SGX Nifty
Outside of Asia, investors will be examining Wednesday’s minutes of the most recent Fed meeting for hints about when and how quickly interest rates will rise.
“As SGX Nifty and other Asian indices show weakness, markets are likely to experience difficulty in early Monday trades. The pessimism can be blamed on the Fed officials’ critical tone over the weekend “Prashanth Tapse, senior vice president for research at Mehta Equities, said.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.
