Indian Markets Dip Amid Global Economic Concerns Ahead of Fed Meeting

Indian markets started the week with losses due to weak global cues and economic slowdowns in Germany and China. The Nifty 50 and BSE Sensex both opened in the negative. Despite this, domestic liquidity is expected to cushion the impact. Asian markets also faced significant declines.

Indian markets commenced the week on a downturn, influenced by weak global cues and economic slowdowns in Germany and China. The Nifty 50 index on the National Stock Exchange opened with a decline of 28 points, down 0.12% at 24,823 points, while the BSE Sensex fell by 210 points, or 0.26%, to 80,973.75. Banking and Market expert Ajay Bagga noted that upcoming Fed rate cuts and seasonally poor September performance added to heightened volatility.

Broad market indices on the National Stock Exchange opened negative, except for the Nifty MicroCap 250. Sectoral indices saw mixed performance, with Nifty FMCG, Nifty Media, and Nifty PSU Bank gaining, while others declined. Bagga emphasized, however, that robust domestic inflows have cushioned the Indian markets despite significant FII outflows, expecting continued volatility but no sharp declines.

Asian markets also faced a severe downturn on Monday. Lower-than-expected US payroll growth intensified selling pressures. Japan's Nikkei 225 dropped 1.84%, Hong Kong's Hang Seng decreased by 1.73%, and Taiwan's major index declined by more than 2%. South Korea's KOSPI index fell by 1.15%. Experts attribute the sell-off to concerns over economic slowdowns in China and Germany in addition to the anticipated Fed rate cuts.

On Friday, Indian indices suffered a sharp loss, with all sectoral indices closing in the red. Nifty 50 dropped by 292.95 points, or 1.17%, to 24,852.15, and BSE Sensex tumbled by 1,017.23 points, or 1.24%, to 81,183.93.

(With inputs from agencies.)