Sensex slips 150 points, Nifty nears 7,900 on China’s weak factory data

Sensex slips 150 points, Nifty nears 7,900 on China’s weak factory data

The S&P BSE Sensex opened over 150 points lower to slip below its crucial psychological level of 26,000 in trade on Monday, while broader CNX Nifty also fell below its key support level of 7,950.

Domestic markets slipped tracking weak trend seen in Asian markets after data on Friday showed China’s factory activity shrank for a 10th straight month in December.

At 9:20 am, the 30-share index was trading at 26,008.79, down 152.11 points, while broad-based 50-share index was quoting 7,916.30, up 46.90 points.

Market breadth remained fairly negative with 26 of the 30 Sensex components trading in red.

“We expect the Nifty to remain within a small range of 7850-8000. During the concluded week, a number of individual stocks performed favorably and we expect such outperformance to continue in the coming week as well. Traders should stick to stock centric approach with a proper exit strategy,” said Angel Broking in a research note.

The Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.2 in December as compared to 48.6 in November. Any reading below 50-point level signals contraction.

Among Asian markets, China’s Shanghai Composite was trading lower by 4 per cent, while Hong Kong’s Hang Seng index shed over 2 per cent. Japan’s Nikkei was down nearly 3 per cent.

 

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