The domestic stock markets dived by more than 1 per cent at opening bell due to weak cues from the global front. Asian markets are trading lower, Wall Street ended lower over the weekend and trends on SGX Nifty indicate a negative start for the broader index in India. At 9:19 am, the BSE Sensex was trading at 48,132.55, lower by 637 points or 1.34 per cent and the NSE Nifty was at 14,457.05, down 171.45 points or 1.16 per cent.
Asian markets got off to a slow start on Monday as holidays in China and Japan crimped volumes and investors awaited a raft of data this week which should show the U.S. leading a global economic recovery.
Wall Street ended lower on Friday, with Amazon, Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. The Dow Jones fell 0.54 per cent, while the S&P 500 lost 0.72 per cent and Nasdaq Composite dropped 0.85 per cent.
On the earnings front, Godrej Properties, IDBI Bank, Kotak Mahindra Bank, SBI Life Insurance and Tata Chemicals will declare their Q4 numbers during the day.
Select banking stocks are trading weak on the BSE; SBI has shed more than 2 per cent, while HDFC Bank, HDFC and Axis Bank have shed 1-2 per cent each. Index heavyweight Reliance Industries has also shed over 1 per cent after the country’s most valuable company reported that its net profit rose 108 per cent to Rs 13,227 crore in the quarter ended March 2021 from Rs 6,348 crore during the corresponding period a year ago. On a sequential basis, Reliance Industries’ profit rose 1 per cent from Rs 13,101 crore.
On the other hand, auto stocks have bucked the weak trend after posting decent April sales numbers over the weekend. M&M, Maruti Suzuki and Bajaj Auto have gained up to a per cent each on the BSE.
The BSE market breadth is weak. Out 2,163 stocks traded on the BSE, there were 1075 advancing stocks as against 992 declines.