Stock Market NewsBenchmark indices started the day in the red on Friday as investors remained on the sidelines awaiting a key US jobs report that may determine whether the Federal Reserve cuts interest rates further.
In comparison, the Nifty 50 index was down 0.32 per cent at 25,065.60 points at 9:45 am, while the S&P BSE Sensex was down 0.37 per cent at 81,897.11. This comes in a week when the blue-chip index rose to a record high but is down around 0.5 per cent amid growing concerns over the health of the US economy.
“Markets are nervous with an action-packed macroeconomic calendar in the coming weeks, especially with the US jobs report and FOMC interest rate decision scheduled for September 18,” said Vikram Kasat, Head of Advisory at PL Capital, Prabhudas Lilladher.
Fears of a slowdown in the US labour market have begun to resurface after recent data indicated not only a slowdown in the overall number of job openings but also more moderate gains in the private sector. The development has fuelled speculation that the Federal Reserve will consider a 50 basis point rate cut at its meeting on 17-18 September.
Clearer signals on the health of the labor market will come in the US nonfarm payrolls report for August, due after Indian markets close. A weaker-than-expected report will improve chances of a 50-basis-point rate cut, while a stronger report may lead to expectations of a more modest 25-basis-point cut. Any US rate cut is expected to spur foreign fund inflows into emerging markets like India.
Early trade was dominated by losers as 10 of the 13 major sectors traded in the red, while domestic-focused small-caps rose 0.4 percent and mid-caps closed unchanged.
Individual shares of Aavas Financiers were the biggest gainers, up 3.2 per cent, after Goldman Sachs upgraded the stock from “neutral” to “buy” given improved earnings growth visibility. Va Tech Wabag and KEC International were the other big gainers, up 5 per cent each and 4 per cent respectively on fresh order pickings.
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