At around 9:40 am, BSE Sensex was down over 150 points, while NSE Nifty was barely holding on to 9,100.
After opening flat on Friday, Sensex and Nifty are both trading in red. (Photo: Reuters)
- Sensex and Nifty entered negative territory after opening fllat on Friday
- The economic relief package has failed to impress markets
- Bank and auto shares were under pressure in early trade
Domestic stock markets on Friday opened cautiously in the wake mixed global cues and early pressure on bank and auto shares.
At around 9:40 am, BSE Sensex was down over 150 points, while NSE Nifty was barely holding on to 9,100. By 10 am, both market benchmarks extended losses as Sensex fell over 200 points and Nifty fell below 9,100 points.
Bank and auto shares were under pressure in early trade as Maruti, Hero MotoCorp, Mahindra & Mahindra, Eicher Motors, ICICI Bank, Axis Bank, HDFC Bank, IndusInd Bank were some of the top laggards.
All sectoral Nifty indexes were trading in red except Nifty FMCG, Metal, and Realty, indicating that a bulk of the sectors continue to remain uncertain about the future outlook.
While analysts were hopeful that the second tranche of economic relief package would provide relief to the markets, it seems that investors were expecting more relief in terms of direct financial support rather than indirect liquidity infusion to help small companies and affected sectors.
Some analysts said the government needs to introduce more measures through direct fiscal support rather than credit guarantees, which at the moment form are a high volume of the relief package.
While the optimism seems to be missing, investors will again keenly await finance minister’s briefing today when she addresses another press conference to announce measures for the broader hospitality sector.
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