Frontline indices the Sensex and the Nifty ended lower on October 7 amid weak global cues ahead of the US Jobs data which will offer a fresh hint at the inflation trends in the US.
Investors have shifted their focus to the US jobs data to see if the US economy has slowed down. Even though the US Fed is unlikely to pause on the rate hikes due to soaring inflation, weak jobs data will give hope that the Fed may lower its aggression for rate hikes.
Sensex opened at 58,092.56, down 130 points against the previous close of 58,222.10, and fell 371 points to touch the intraday low of 57,851.15.
The index closed 31 points, or 0.05%, lower at 58,191.29 while the Nifty settled at 17,314.65, down 17 points, or 0.10%. Midcaps underperformed as the BSE Midcap index fell 0.15%. However, smallcaps outperformed as their sectoral index on BSE rose 0.30%.
"Prior to the release of the US jobs data, the domestic market traded with cuts in line with its global counterparts. Stronger-than-anticipated job data may lead to a market decline as it could give the Fed more reasons to focus on inflation," said Vinod Nair, Head of Research at Geojit Financial Services.
Shares of Titan, Power Grid, NTPC, IndusInd Bank and Maruti ended as the top gainers in the Sensex index. On the flip side, Mahindra & Mahindra, UltraTech Cement, SBI, TCS and Bajaj Finance ended as the top laggard stocks in the Sensex index.
On the sectoral front, BSE Consumer Durables rose 2.13% while Energy, FMCG, IT, Oil & Gas and Metal indices fell more than half a percent each.
Crude oil prices traded higher after the OPEC+ countries announced supply reductions. Brent Crude traded above the $95 a barrel mark. The rupee remained under pressure, falling 44 paise to close at 82.33.
The Nifty remained volatile before closing on a muted note. Rupak De, Senior Technical Analyst at LKP Securities observed that the index closed above 50 EMA (exponential moving average), confirming the ongoing positive trend.
"Going forward, the trend is expected to remain positive as long as the Nifty sustains above 17,300. On the higher end, the 17,600-17,700 zone may act as resistance, whereas, on the lower end, support is visible at 17,200," said De.
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