Domestic equity benchmark BSE Sensex dropped over 150 points in early session on Monday, weighed down by losses in banking, auto and IT stocks amid unabated foreign fund outflow.
The 30-share index was trading 147.20 points, or 0.40 per cent, lower at 36,834.57 at 0930 hours, while the broader Nifty rose 31 points, or 0.28 per cent, to 10,915.20.
In the previous session on Friday, the BSE barometer ended 337.35 points, or 0.92 per cent, higher at 36,981.77. Similarly, the broader NSE Nifty spurted 98.30 points, or 0.91 per cent, to finish at 10,946.20.
Top losers in the Sensex pack included Tata Motors, Maruti, Tata Steel, HCL Tech, IndusInd Bank, Vedanta, Bajaj Auto, Hero MotoCorp, HDFC duo, NTPC and Axis Bank, shedding up to 2.40 per cent.
On the other hand, Sun Pharma, HUL, Bharti Airtel, L&T, RIL, Bajaj Finance and ITC rose up to 1.66 per cent.
According to experts, despite positive cues from other global markets, domestic equities reeled under pressure amid continued foreign fund outflow.
Selling by foreign portfolio investors (FPIs) continued over the past week. Given the sustained slowdown, experts fear that Q2FY20 earnings numbers could also be weaker than expected, in which case there would be further downward adjustment for the markets.
On Friday, FPIs sold shares worth a net of Rs 957.05 crore, while domestic institutional investors purchased shares worth Rs 1,207.20 crore, provisional data showed.
Elsewhere in Asia, bourses in Shanghai, Japan and Korea were trading in the green in their respective late morning sessions, while that in Hong Kong was in the red.
Rupee rises 14 paise to 71.58 against USD in early trade
The rupee appreciated by 14 paise to 71.58 against the US dollar in early trade on Monday as China’s easing move and rate cut hopes by the US Fed enthused investors.
Forex traders said market investors were optimistic about cut in interest rates by the US Federal Reserve following below-par US jobs data.
Besides, China’s easing move also enthused investors.
In a bid to inject more liquidity into the economy, the People’s Bank of China on Friday said it would slash the amount of cash lenders must keep in reserve to its lowest level in 12 years.
At the interbank foreign exchange the rupee opened at 71.72, then gained further ground and touched a high of 71.58, registering a rise of 14 paise over its previous close.
Rupee had settled at 71.72 against the US dollar on Friday.
Forex traders however said said weak opening in domestic equities weighed on the rupee.
Domestic bourses opened on a negative note on Monday with benchmark indices Sensex trading 129.77 points higher at 36,852.00 and Nifty up 31.90 points at 10,914.30.
Moreover, sustained foreign fund outflows and rising crude prices also dragged the local currency down.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 957.05 crore on Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.96 per cent to trade at USD 62.13 per barrel.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 98.43.
The 10-year government bond yield was at 6.59 per cent in morning trade.