• Biggest blow to Indigo


• Interglobe Aviation fell 5%


• Investors are in cautious mode

IndiGo Drop: At the beginning of the week, the stock market was seen falling. Both BSE Sensex and NSE Nifty were trading in the red. India’s equity benchmarks opened lower ahead of the Federal Reserve meeting, while InterGlobe Aviation, operator of the country’s largest airline IndiGo, fell. The company’s shares fell last week after the regulator (DGCA) warned of cancellation of hundreds of flights. By 9:15 am today, the Nifty 50 and BSE Sensex were trading down 0.1% at 26,159.80 and 85,624.84 respectively. Ten of the 16 major sectors declined.

Mid-cap and small-cap indices remained steady in the market. Investors are cautious globally ahead of the Federal Reserve’s policy announcement this week. The central bank of the world’s largest economy is expected to cut interest rates. IndiGo’s operator, InterGlobe Aviation, was the biggest loser in the Nifty 50, falling 5%. Among the Sensex companies, shares of Tech Mahindra were the strongest gainers, up 0.95%. Shares of Infosys also gained 0.70%. Shares of TCS gained 0.51%. While, Eternal Shares gained 0.39%.

In contrast, shares of Bajaj Finance declined by 1.03%. Meanwhile, shares of BEL also declined by 0.74%. Shares of Asian Paints fell 0.62%. Also, shares of Maruti Suzuki fell 0.60%. Shares of NTPC also declined by 0.57%.

Chief Investment Strategist of Geojit Investments Limited Dr. VK Vijay Kumar says that positive and negative news in the future globally can cause market fluctuations. The economy is recovering and there are signs of strong growth in corporate earnings. Hence the stock market is getting more support. This year the government and the RBI spent heavily to keep interest rates low, the results of which are clearly visible. GDP grew at a pace of 8.2% in the second quarter. Meanwhile, the RBI has raised the rate to 7.3% for the next financial year, which is a positive for the market.