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Global cues dent equities, metal stocks fall (Roundup)

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Mumbai | Wednesday, 2021 2:15:06 AM IST
India's benchmark equity indices broke a four-day winning streak on Tuesday as global cues marred investors' sentiments.

Globally, Asian stocks fell sharply on Tuesday, following the broadly negative cues that emerged overnight from Wall Street.

The outlook for higher inflation weighed on the markets' sentiments amid an increase in commodities prices.

Similarly, the European stock markets traded sharply lower Tuesday, following the previous session's tech-led selloff on Wall Street ahead of the latest reading on US consumer prices, which many fear could prompt the Federal Reserve to rethink its monetary policy stance.

On the domestic front, sectors such as oil & gas, and power were the main gainers while metals, IT and banks were the main losers.

Consequently, the S&P BSE Sensex closed at 49,161.81, lower by 340.60 points, or 0.69 per cent, from its previous close.

The Nifty50 of the National Stock Exchange ended the day's trade at 14,850.75, down 91.60 points, or 0.61 per cent, from its previous close.

"Rising inflation threatens the long-term revenue outlook of tech stocks, which underpins their valuation. Record high prices for commodities, including iron ore and copper, have also triggered anxiety over inflation, leading the rest of Asian markets to also fall," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"The run-up in commodity prices has stoked fears of the US Federal Reserve tightening its monetary policy much sooner than expected."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "The broader market remained resilient to the market fall and ended higher today as Covid cases saw a sharp decline. PSUs remained abuzz with BHEL, Coal India, Concor, and GAIL witnessing strong gains."

Geojit Financial Services Research Head Vinod Nair said: "Rising commodity prices, like international steel prices, are at a record high which has instilled a fear in the world market of rising inflation. Global markets are retreating in anticipation of future interest rates hikes, in which the technology sector will be heavily impacted as it has benefitted the most during a pandemic."

"Indian metal stocks witnessed mild profit booking while buying interest is seen in PSE stocks."

--IANS rv/vd

( 362 Words)

2021-05-11-20:04:03 (IANS)

 
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