Weak Global Trends, Virus Concerns Weigh On D-Street

The Indian equity markets continued to correct further in the morning trade on Friday, July 9 on the back of weak trends in the Asian markets and a selloff in the banking stocks. At the opening, the Sensex was down 193.09 points at 52375.85, and the Nifty was down 61.40 points at 15666.50.

With the Q1FY22 earnings session moving ahead after results of TCS being announced on July 8, markets will tune on the same and are likely to get a direction ahead, said experts. However, the 0.8 per cent cut in S&P 500 and deeper cuts in European markets indicate that the uptrend is temporarily halted, they added.

Siddhartha Khemka of MOFSL, said, "Consistent earnings delivery v/s expectations is critical for further outperformance." A lot of stock-specific action could be seen with the Q1FY22 session, he added.

However, the India Vix - which indicates the possibilities of volatility in the near future in the market, surged recently after trading at its lows and this indicates caution in the near term. "India VIX spiked by 11.06% from 12.21 to 13.56 levels. Sudden spurt in VIX from its multiple months low indicates some caution for short-term market action," Khemka explained.

However, on the flip side, the Metal stocks saw buying interest with shares of Tata Steel and JSW Steel being the top index gainers, adding over a per cent each in the morning trade on Friday.

In the overall market performance at the time of filing, nearly 1478 shares have advanced, 1108 shares declined, and 114 shares were unchanged.