(MENAFN – Khaleej Times) Equity markets fell into the red across the globe due to a slow progress in US-China trade talks, fading hopes of Federal Reserve rate cut after strong US jobs data and disappointment over the Indian budget. However, most of the Gulf market bucked the trend and closed in the green.
On Monday, India’s Sensex fell 2 per cent to close at 38,702 points as investors were disappointed by some budget proposals such as higher tax incidence for portfolio investors and high net worth individuals. Nifty lost over 2 per cent to close at 11,558 points.
Among the Gulf bourses, both Dubai and Abu Dhabi closed in positive columns. The Abu Dhabi index added 0.2 per cent with Abu Dhabi Commercial Bank gaining 1.3 per cent while the Dubai index increased 0.3 per cent, led by a 2.5 per cent jump in its largest-listed developer Emaar Properties.
Saudi indices were lifted by financial shares while Kuwait rose for the eighth straight session following MSCI’s decision to include the country in its main emerging markets index. The Saudi index gained 0.2 per cent on Monday, taking its year-to-date gains to nearly 13 per cent. Kuwait’s index closed 0.2 per cent higher.
In India, Bombay Stock Exchange plunged for the second consecutive day of trading on Monday after the budget on Friday, taking the two-combined losses to nearly 3 per cent. Since the fundamentals are strong, analyst expect Indian equities to go upward in coming sessions.
Devesh Mamtani, president for investment and advisory (financial markets) at Century Financial, said major Indian indices are down more than 3 per cent in two trading sessions, owing to a budget which was not so favourable for the industries.
“Given the inflation numbers in India which are expected at 3.2 per cent for