Sensex falls nearly 300 points to achieve a winning record in 7 days
India’s equity benchmark fell on Tuesday, as the Chinese market wobbled after Xi Jinping’s new leadership team raised concerns that a stronger Party leadership would prioritize home ownership. water at the expense of the private sector.
While Indian stock markets showed modest gains early on Tuesday, sparked by a rally on Wall Street on hopes the Federal Reserve could be nearing an end to interest rate hikes. Despite their strong performance, Asian peers fell on Tuesday as weakening Chinese shares and the yuan limited the appeal for domestic equities.
The 30-stock BSE Sensex index fell 287.70 points, or 0.48%, to close at 59,543.96 and the broader Nifty-50 index fell 74.40 points, or 0.42%, to close. at 17,656.35, holding on to a seven-day winning streak, including gains in One hour Muhurat trading window on Monday.
On Monday, equity benchmarks posted significant gains, hitting a one-month high during Muhurat trading hours to celebrate the start of the 2079 Hindu Samvat holiday.
The Indian stock market was closed on Monday for normal trading and was open for an hour – known as the Muhurat Trading session, and will close in gains on Wednesday to celebrate Diwali.
On Tuesday, Asian stocks saw lows around pandemic lows, with the yuan falling to a near 15-year low as investors grew nervous at growing power. expansion of President Xi Jinping.
Before Hong Kong tech companies struggled to recover, MSCI’s broadest index of Asia-Pacific stocks fell to its lowest level since April 2020.
Even as the Hang Seng Tech index rose 3% in the afternoon, investors found little solace as it fell more than 10% on Monday and nearly 50% this year.
Kenny Ng, Strategist at China Everbright Securities in Hong Kong, told Reuters: “The short-term technical recovery is the main factor for today’s rise. “(The) cumulative decline in Hong Kong stocks is deep.”
As investors analyzed a steady stream of business news ahead of the Federal Reserve and European Central Bank policy meetings, stocks in Europe rallied.
Following Monday’s strong Wall Street performance, futures on the S&P 500 and Nasdaq 100 fluctuate between modest gains and losses, with major tech giants such as Alphabet, Microsoft, Amazon and Apple to report. in this week.
Although more than half of S&P 500 businesses have posted third-quarter earnings, investors are concerned that the effects of the slowing economy won’t be felt for some time.
Christian Mueller-Glissmann, Managing Director of Portfolio Strategy at Goldman Sachs, said on Bloomberg TV: “What we’ve seen throughout the year is that the equity risk premium has really compressed. .
“That leaves you more vulnerable if you’re disappointed in growth, cash flow, etc. Right now, that hasn’t really happened, but all the major indicators point to risk in this direction.”