Sensex Today: Benchmark equity indices BSE Sensex and Nifty50 were trading higher after opening in the red on Monday, weighed down by weak sentiment flowing from US markets.
The market is likely to turn volatile in the coming days as indicated by the spurt in CBOE VIX by 12% to 23.50. Two factors are likely to weigh on markets: one, the outcome of the US presidential elections, and two, the Fed’s decision on rate cut. The presidential election is tight now and can go both ways. The market will be concerned about a possible Trump victory and its consequences on policy, particularly on trade tariffs, which markets fear can trigger a trade war, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Global Cues
Share markets in Asia slid on Monday after worries about a possible US economic downturn slugged Wall Street, while dragging bond yields and commodity prices lower as investors avoided risk assets for safer harbours.
Japan’s Nikkei bore the brunt of the early selling as a stronger yen pressured exporters, losing 2.4 per cent on top of a near 6 per cent slide last week.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.6 per cent, after losing 2.25 per cent last week.
S&P 500 futures and Nasdaq futures were both a fraction lower after Friday’s slide.
On Friday, Wall Street indexes closed sharply lower. The Dow Jones Industrial Average fell 410.34 points, or 1.01 per cent, to 40,345.41, the S&P 500 lost 94.99 points, or 1.73 per cent, to 5,408.42 and the Nasdaq Composite lost 436.83 points, or 2.55 per cent, to 16,690.83.
