Mumbai, Dec 18: Indian markets opened lower in line with other Asian peers. Rate sensitives like banks and realty continued with downward movement on
expectations of rise in interest rates. Power, capital goods and pharma stocks showed some resistance.
“US markets finished steeply lower after the dollar climbed to three-month highs against the euro, prompting investors to sell equities and dollar-denominated commodities. First time Jobless Claims, expected to sink, surprisingly saw a rise of 7000, adding to weak sentiment.
The movement in our market was marked by muted performance by the benchmark indices but comeback of midcap and smallcap indices that gained nearly a percent.
Food inflation for the week ended December 5 came in at 19.95%, a 10 year high. Postponement of extension of market timing to January 4 came as a temporary relief for the worried market participants. Today, our markets are likely to start on a weak note, echoing the Wall Street losses. 5000 remains a key support while 5100 is the immediate resistance,” said Anagram Stock Broking note.
At 10 am, Bombay Stock Exchange’s Sensex was at 16844.19, down 50.06 points or 0.30 per cent. National Stock Exchange’s Nifty was at 5026.60, down 15.15 points or 0.30 per cent.
Broader markets were also witnessing some profit booking. BSE Midcap Index was down 0.14 per cent and BSE Smallcap Index was up 0.21 per cent.
The US market ended lower following bounce back in the dollar. The Dow Jones Industrial Average dropped 1.27 per cent, the Standard & Poor’s 500 Index fell 1.18 per cent and the Nasdaq Composite Index lost 1.22 per cent.
Asian markets were also witnessing a lacklustre session. Nikkei 225 was down 0.95 per cent, Shanghai Composite fell 1.59 per cent and Strait Times was down 0.80 per cent.
–Agencies