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By Malvika Gurung
Investing.com — The domestic market made a lower opening on Tuesday, following an overnight sell-off on Wall Street and Asian stocks retracting from three-month peaks after a better-than-expected US services industry activity raised investor concerns about the Fed sticking to its aggressive interest rate hikes for longer.
Benchmark indices opened in red and extended losses as the pay proceeded, with declining 0.53% below the 18,600 level and slipping 345.5 points or 0.55% at the time of writing. The market volatility barometer jumped 2.54% to 14.08.
IT stocks witnessed the most correction, followed by metal and pharmaceutical stocks, while PSU banks were the only sector that provided support on Dalal Street.
All the sectoral indices under the Nifty umbrella witnessed deep sell-offs, led by , tanking 1.7%, while slid 1.11% and corrected 0.47%. All sectors barring were in red, with the latter jumping 1.64%.
In a note sent to Investing.com, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, points out two trends in the current economic scenario.
“The US economy continues to be strong as reflected by the jobs data, labour market conditions and ISM services. But these positive numbers are viewed by the market with concern since this strong scenario might persuade the Fed to continue to be hawkish. The Indian macros indicate steady improvement with buoyant tax collections, impressive credit growth and declining crude,” he adds.
The market expert suggests buying on dips, stating that it has worked well in the ongoing year and investors can continue with the strategy.
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