Nifty 50 Loses More than 1% Amid Wider Souring Of Global Risk Sentiment

The Nifty 50 has slipped 1.2% today, with weakness in mid- & small-cap stocks highlighted.

• Both the Nifty Midcap 100 and Nifty Smallcap 100 indices lose 2.1%.
• Mint newspaper’s analysts suggest that investors may be taking profit following significant gains in recent weeks, while tomorrow’s futures and options expiry may be promoting volatility.
• Weakness in Indian equities comes amid a broader souring of global risk sentiment, with headwinds from China and pre-market indications for Nvidia (-2%) noted.
• Separately, Reuters reported that fresh US sanctions on Moscow threaten to dent Russian oil sales to India, who are the biggest buyers of Russian seaborne crude, complicating Indian state refiner efforts to secure annual supply deals.
• Looking ahead, GDP data is scheduled for tomorrow (12:00GMT). Morgan Stanley expect growth to remain robust, even as it moderates to 6.5% y/y in 4Q-2023 from 7.6% in 3Q-2023. They expect private consumption to pick up, driven by festive and holiday spending.