Stock Market Update Feb 07-2024: Sensex & Nifty Dip at Noon

Stock Market Update Feb 07-2024: Sensex & Nifty Dip at Noon/ANI

Stock Market Update Feb 07-2024: Sensex & Nifty Dip at Noon

At noon, benchmark indices faced a downturn, particularly dragged down by IT stocks, while the broader market managed to retain its earlier gains. The Sensex witnessed a decline of 211.95 points or 0.29%, reaching 71,974.14, and the Nifty was down 44.70 points or 0.27% at 21,871.05.

IT Sector Leads Decline, Other Indices Follow Suit

The IT index took a significant hit with a 1% decrease, impacting other sectors such as Auto, Bank, Pharma, Healthcare, and Oil & Gas, all experiencing pressure around noon.

Asian Stocks Climb Amid Expectations of Chinese Support

Asian stocks demonstrated a positive trend, driven by expectations of China adopting more forceful measures to support its markets. Despite cautious remarks from Federal Reserve officials, a gauge of Asian equities reached its highest point in over a month.

In Hong Kong, shares opened higher, while in mainland China, traders were cautious, evaluating the effectiveness of recent market-stabilizing efforts by Beijing. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.7%, reaching a five-week high, supported by a 1.8% jump in South Korea. The Nikkei in Japan experienced a slight dip of 0.1% but rebounded from early lows.

Global Futures and Earnings Reports Impact Market Sentiment

In global markets, EUROSTOXX 50 futures added 0.2%, FTSE futures increased by 0.3%, and S&P 500 futures firmed by 0.1%. Nasdaq futures rose 0.2%, and noteworthy earnings reports on Wednesday included companies like Uber, Walt Disney, and PayPal.

The yield on 10-year Treasuries slipped by 2bps in early Asian trading. In the US session, bonds rebounded after a solid demand for the three-year auction, boosting sentiment ahead of a record $42 billion sale of 10-year Treasuries scheduled for Wednesday.

Oil Prices Rise Amid Geopolitical Tensions

In the oil market, prices rose for the third consecutive day, despite geopolitical risks in the Middle East. Brent crude approached $79 a barrel, climbing 1.6% over the previous two sessions. West Texas Intermediate was near $74. Geopolitical tensions in the region, including the targeting of two ships in the southern Red Sea by the Houthis, added to concerns, leading to a major re-routing of global trade. The US has vowed additional strikes against Iranian forces and their proxies in the region.