Domestic equity benchmark BSE Sensex dropped nearly 200 points in early trade Friday amid heavy foreign fund outflow and weak domestic headwinds.
The 30-share index opened over 150 points tracking rally global equities, but surrendered all gains to trade 201.04 points or 0.52 per cent lower at 38,696.42 at 0955 hours. The index swung nearly 400 points in the first hour of the session.
Similarly, the broader Nifty was also quoting 66.75 points or 0.58 per cent down at 11,530.15.
In the previous session, the 30-share gauge closed at 38,897.46, down by 318.18 points or 0.81 per cent, and the Nifty cracked below the 11,600 mark, ending 90.60 points or 0.78 per cent lower at 11,596.90.
Market opened higher following rally in other Asian equities on reports of two senior US Federal Reserve officials hinting at aggressive rate cuts ahead of the July 30-31 policy meeting.
However, unabated foreign fund outflow, disappointing earnings and reports of slowing economic growth dented market sentiment here, traders said.
“Foreign funds are on a risk-off mode, while domestic mutual funds are providing marginal support in the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
On a net basis, foreign institutional investors sold equities worth Rs 1,404.86 crore, while domestic institutional investors purchased shares to the tune of Rs 329.05 crore, provisional data available with stock exchanges showed Thursday.
Top losers in the Sensex pack included Yes Bank, M&M, Bajaj Finance, Tata Motors, ONGC and Maruti, falling up to 2.27 per cent.
On the other hand, Tata Steel, TCS, Vedanta, HUCL, PowerGrid, HCL Tech, HDFC Bank and Infosys gained up to 0.60 per cent.
Shares of index-heavyweight RIL were trading 0.34 per cent lower ahead of its quarterly results, scheduled to be announced later in the day.
Hindustan Zinc, Bandhan Bank, Dabur India, RBL Bank, Unitech, L&T Finance Holdings and L&T Technologies are also slated to report June quarter results on Friday.
Meanwhile, the Indian rupee appreciated 18 paise (intra-day) to 68.78 against the US dollar.
The global oil benchmark Brent crude futures were trading 1.92 per cent higher at 63.12 per barrel.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading over 1 per cent higher in their respective early sessions.
Rupee rises 23 paise to 68.74 vs USD in early trade
The rupee appreciated by 23 paise to 68.74 against the US dollar in early trade Friday, as market participants pinned their hopes on aggressive interest cut by the US Federal Reserve later this month.
Forex traders said rupee along with most Asian currencies were trading in the positive territory following dovish comments from both New York Fed President John Williams and Vice Chair Richard Clarida.
The rupee opened strong at 68.78 at the interbank forex market then gained further ground to touch 68.74 per dollar, displaying gains of 23 paise over its last close.
On Thursday, the rupee had settled at 68.97 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 96.81.
Traders said foreign fund outflows and cautious opening in domestic equities weighed on the local unit.
Foreign investors sold shares worth Rs 1,404.86 crore on a net basis Thursday, provisional data showed.
The benchmark BSE Sensex was trading 221.24 points, or 0.57 per cent down to quote at 38,706.82 while the NSE Nifty was trading at 11,529.00 , down 67.90 points, or 0.59 per cent.
Meanwhile, brent crude, the global benchmark, was trading at 63.18 per barrel higher by 2.02 per cent.