Domestic stock markets started Thursday’s session on a negative note following three days of gains, amid losses across global equities after the US central bank warned the world’s largest economy faced a highly uncertain path to recovery from the coronavirus-induced downturn. The S&P BSE Sensex index opened 330.89 points – or 0.86 per cent – lower at 38,283.90, and the broader NSE Nifty 50 benchmark started the day at 11,317.45, down 90.95 points – or 0.80 per cent – from its previous close.
At 9:21 am, the Sensex traded 359.82 points – or 0.93 per cent – lower at 38,254.97 while the Nifty was at 11,306.05, down 102.35 points – or 0.90 per cent – from its previous close.
Global market sentiment had been bullish up until the Federal Reserve’s comments, with the S&P 500 and the Nasdaq hitting all-time highs driven largely by Apple Inc, whose market value touched the $2-trillion mark.
The readout on Fed discussions provides hints to further action that the U.S. central bank could take in September. No change in interest rate policy is expected until end-2021.
Equities across Asia suffered losses, with MSCI’s broadest index of Asia Pacific shares outside Japan last seen trading 1.62 per cent lower, while Japan’s Nikkei 225 benchmark was down 0.70 per cent.
China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s KOSPI indices were down 1.06 per cent, 2.00 per cent and 2.90 per cent at the time respectively.
The E-Mini S&P 500 futures were down 0.64 per cent, indicating a negative start for US markets on Thursday. On Wednesday. the S&P 500 index had ended 0.44 per cent lower, whereas the Dow Jones Industrial Average and Nasdaq Composite gauges declined 0.31 per cent and 0.57 per cent respectively.
