Sensex tumbles 500 pts, Nifty at 24,530; Siemens Energy jumps 13%
- Sensex dropped 500 points, Nifty slipped to 24,530 during early trade on Aug 7.
- TCS emerged as the top gainer among frontline stocks.
- Siemens Energy shares rallied 13% on the back of strong business updates.
- Investors remained cautious ahead of key economic data releases.
Markets open lower, extend previous session's losses
Indian equity benchmarks opened deep in the red on Friday, extending the previous session's downward move. The S&P BSE Sensex tumbled about 500 points in early trade, while the NSE Nifty slipped to the 24,530 level, reflecting weak global cues and profit-booking across sectors.
Selling pressure was broad-based, though IT stocks showed resilience. TCS led the gainers on the Sensex, bucking the overall trend, as investors sought refuge in defensive names amid the volatility.
Siemens Energy steals the show
The biggest movers of the day came from the capital goods space, with Siemens Energy surging as much as 13 per cent in early deals. The sharp rally followed the company's announcement of a strong order pipeline and improved margin guidance, which cheered investors.
Analysts said the stock's surge reflected growing confidence in the company's execution capabilities, especially in the renewable and grid technology segments. The broader capital goods index, however, remained mixed as other heavyweights traded lower.
Broader market under pressure
The midcap and smallcap indices also traded in the red, tracking the benchmark indices. Market breadth was negative, with more than two stocks declining for every advancing stock on the BSE.
Sectorally, banking, auto, and metals were the worst hit, while IT and pharma provided some support. The rupee, meanwhile, remained range-bound against the dollar, offering little comfort to traders.
What's driving the sell-off?
Global markets turned cautious overnight after US Treasury yields inched higher and investors awaited key inflation data due later in the day. Asian peers opened mixed, adding to the uncertainty.
Domestically, concerns over elevated valuations and a slowdown in consumption demand kept participants on edge. Foreign institutional investors have been net sellers in recent sessions, adding to the pressure on large caps.
Looking ahead
Traders will now watch the US non-farm payroll data and domestic earnings reports due through the day. Any positive surprise on the jobs front could lift sentiment, but a strong print may also revive rate-hike fears.
Market participants are likely to remain cautious until the next directional trigger emerges from global data or policy commentary.