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The Indian benchmark indices were trading flat in early trade on Wednesday, tracking a global sell off in equities prompted by growth concerns as the International Monetary Fund downgraded global economic growth forecast.
The Sensex was down 26.98 points or 0.10 per cent at 26,244.99 while the NSE Nifty was down 12 point or 0.15 per cent at 7,840.
Across-the-board selling is likely today, tracking the US, European, and Asian indices as investors dumped stocks in favour of safe haven assets and treasury papers. Investors will also remain cautious ahead of minutes of the latest US Federal Reserve policy meeting, due later today.
There is also some nervousness in the Indian market ahead of the July—September corporate earnings season, which begins with Infosys on October 10.
However, the downside may be limited as the International Monetary Fund upgraded India’s gross domestic product growth forecast to 5.6 per cent from 5.4 per cent earlier.
On Tuesday, the markets opened after a long break and indices fell nearly 1%. The National Stock Exchange’s Nifty ended at 7,852.40, down 93.15 points or 1.2% while the S&P BSE Sensex closed at 26,271.97, down 296.02 points or 1.1%.
Asian stocks slid on Wednesday as worries about waning global growth lifted safe-haven bonds and the yen, while shoving oil prices to their lowest in more than two years.
Government bonds were in big demand as investors wagered global inflation would continue to slow and even put off the day when US interest rates might rise.
Minutes of the Federal Reserve’s last policy meeting are due later in the session and markets will be acutely sensitive to how the debate between hawks and doves on the committee was playing out.
In Asia, Japan’s Topix shed 1.6 percent while the Nikkei dropped 1.4 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4 per cent, while Australia’s main index lost 1.1 per cent.
From: The Hindu