Indian equity markets lost more than 1% after a panic ahead of the US Fed policy meeting on Thursday.
Analysts said the increase in COVID-19 cases increased sales pressure, which could stabilize global markets.
Increasing losses for the fourth consecutive session, the S&P BSE Sensex fell 1.12%, or 562 points, to 49,801.62 on broader sales. PSU and banking stocks were the worst hit. The NSE Nifty 50 also fell by 1.27% to 14,721.30.
“The corrective phase continues for our markets and after some consolidation, the broader market also saw further pressure from US Fed policy. The last-hour correction in the banking index resulted in further pressure; And the lack of interest buying is now … a value as well as a result of the correction, ”said Ruchi Jain, senior analyst, technical and derivatives, Angel Broking.
“The Nifty has ended at around 14,700 which is now a critical point and its breach may continue to improve the price to 14,500. On the flip side, 14,850-14,900 has now become an immediate hurdle, ”he said.
Ajay Mishra, VP, Research, Religare Broking, said, “Markets will first respond to the Fed’s results in early trade on Thursday. “We maintain our cautious approach and suggest maintaining long positions.”
He said a fall below 14,600 in the Nifty would pave the way for further slide. “We are seeing profit and profit except the board [for] IT and FMCG; So plan according to your trades, ”he said.
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