Why is the market down today? Equity benchmarks open on cautious note

| Updated: Monday, September 21, 2020, 17:00 [IST]

New Delhi, Sep 21: Equity benchmarks Sensex and Nifty opened on a cautious note on Monday amid lack of directional cues from global and domestic markets.

The 30-share BSE index was trading 38.84 points or 0.10 per cent higher at 38,884.66; while the NSE Nifty rose 10.30 points or 0.09 per cent to 11,515.25.

Why is the market down today? Equity benchmarks open on cautious note — Representational Image

HCL Tech was the top gainer in the Sensex pack, rising around 4 per cent, followed by Infosys, Tech Mahindra, TCS, Kotak Bank, M&M and Asian Paints.

HCL Technologies on Monday said it will acquire Australian IT solutions firm DWS Ltd, a move that will help the Indian company strengthen its position in the Australia and New Zealand market.

On the other hand, Bajaj Auto, Nestle India, ICICI Bank, PowerGrid and Bharti Airtel were among the laggards.

In the previous session, Sensex settled 134.03 points or 0.34 per cent lower at 38,845.82, while Nifty fell 11.15 points or 0.10 per cent to finish at 11,504.95.

Meanwhile, exchange data showed that foreign institutional investors bought equities worth Rs 205.15 crore on a net basis on Friday.

According to Vinod Nair, Head of Research at Geojit Financial Services, the clear lack of direction to either side was visible in last week's trade. "Due to lack of any fresh triggers for the market, the current uncertainty is expected to continue," he added.

Bourses in Shanghai, Hong Kong and Seoul were trading lower in mid-day deals.

Meanwhile, global oil benchmark Brent crude was trading 0.16 per cent higher at USD 43.22 per barrel.

Zinc prices on Monday fell by 0.96 per cent to Rs 195.95 per kg in futures trade as speculators reduced their exposure taking negative cues from spot market.

On the Multi Commodity Exchange, zinc contracts for September delivery was trading lower by Rs 1.90, or 0.96 per cent, at Rs 195.95 per kg in 2,412 lots.