Sensex and Nifty start the trading week with a dip
Indian stock markets Sensex and Nifty started the week with a dip, caused by rising COVID-19 cases and global economic concerns. Sensex was down by 471.01 points or 0.94% at 49,216.52, while Nifty fell by 154.40 points or 1.04% at 14,752.80 in the early hours of May 17. Both indices showed a significant decline in banking, metal, and auto stocks.
Pharma, IT stocks stop the bleeding
Despite the overall decline, pharma and IT stocks showed a significant surge in the initial hours of trading. These sectors have been a major support for the stock market in recent times. Pharma stocks such as Cipla, Dr. Reddy’s Laboratories, and Sun Pharma showed a growth of 1.5%-2%. Similarly, IT stocks such as Infosys, TCS, and Wipro also showed an upward trend.
Global markets remain volatile
Global markets remain volatile, with concerns about rising inflation and interest rates. US stocks dipped lower on Friday, with the Dow falling by 1.1%. Asian stocks also showed a dip on Monday, with Japan’s Nikkei falling nearly 1%. European markets were also reportedly unstable, with the UK and Germany showing a decline.
Oil prices show a decline
Oil prices showed a decline on Monday, with Brent crude dropping by 0.5% to $67.67 a barrel and WTI crude dropping by 0.6% to $64.82 a barrel. The declining oil prices have been attributed to concerns about rising COVID-19 cases in India and Japan and ongoing tensions between the US and Iran.
Experts advise caution while investing
Experts have advised caution while investing in the current market scenario. Rising COVID-19 cases, global economic concerns, and inflation fears have created an unstable market. Investors are advised to diversify their portfolios and avoid taking unnecessary risks.
The stock market started the week on a pessimistic note, with a decline in overall indices. However, the pharma and IT sectors showed a significant surge, indicating that they may continue to be a support for the markets. Nevertheless, investors are advised to exercise caution while investing in these volatile times.