Sensex, Nifty open lower as weak US jobs data reignites recession fears

Benchmark stock market indices opened Monday’s session on a weak footing, weighed down by concerns over a potential recession in the US following weaker-than-expected jobs data.

At 9:19 am, the S&P BSE Sensex had dropped 181.90 points to 81,002, while the NSE Nifty50 slipped by 49.55 points to 24,802.60.

Most broader market indices also began the day in the red, with a slight uptick in volatility, reflecting the cautious sentiment among Dalal Street investors.

Among the top gainers were life insurance stocks like HDFC Life and SBI Life, alongside FMCG giants HUL and Britannia. On the downside, major laggards included ONGC, Hindalco, Tata Steel, Adani Ports, and Coal India.

“The market is likely to experience increased volatility in the coming days, as the CBOE VIX has surged by 12% to 23.50,” noted Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Two key factors are influencing this: the outcome of the US presidential elections and the Fed’s decision on a rate cut. A Trump victory could heighten fears of trade wars, while uncertainty looms over whether the Fed will opt for a 25bp or 50bp rate cut in September,’ he added.

“A 25bp cut might fall short in addressing the economic slowdown, while a 50bp cut could further stoke recession concerns. Investors should monitor these developments, but current market weakness could provide an opportunity to accumulate high-quality large-cap stocks, particularly in defensive sectors like pharmaceuticals,” Vijayakumar noted.

Another significant event that could steer market sentiment is the outcome of the 54th GST Council meeting, set to take place today.