A morning walk down Dalal Street | Market under control of bears; traders should not initiate fresh longs positions

Both Sensex and Nifty broke below crucial psychological support before bouncing back.

The S&P BSE Sensex bounced back after breaching 37,000 on the downside before bouncing back while Nifty50 also broke below 10,900 levels but bulls pushed the index helped the index to climb above 10950 towards the close.

The final tally on D-Street – the S&P BSE Sensex dropped 462 points while Nifty closed 138 points lower at 10,980, a fresh 5-month low.

Indian markets remained in the bear grip since the beginning of the trade weighed down by comments made by US Federal Reserve chair on the future trajectory of rate cuts.

The broader markets also fell in line with benchmarks. All sectoral indices also saw selling pressure with Bank, IT, Metal and Pharma falling between 1 percent and 3 percent, but auto ended higher.

On the macro front, Gross GST collections stood at Rs 1.02 lakh crore in July, marginally up from the previous month, official data showed on August 1. The July 2019 mop-up was, however, 5.8 per cent higher than the Rs 96,483 crore collected in the same month last year.