Sensex, Nifty in the red as markets open on a tepid notehttps://indianexpress.com/article/business/sensex-nifty-rupee-market-news-5922783/

Sensex, Nifty in the red as markets open on a tepid note

The rupee, meanwhile, rebounded from six-month low level and appreciated by 23 paise to 71.48 against the US dollar in early trade on Wednesday tracking gains in Asian currencies and fresh foreign fund inflows.

Sensex, Nifty in the red as market open on a tepid note
Top laggards in the Sensex pack included Tata Motors, Yes Bank, Vedanta, ONGC, Tata Steel and HCL Tech, which fell up to 3 per cent.

Domestic equity benchmarks BSE Sensex and NSE Nifty started on a negative note on Wednesday as investors remained risk averse due to uncertainties over economic growth. The 30-share index was trading 65.72 points, or 0.18 per cent, lower at 37,262.29. The broader Nifty dropped below the 11,000 level, falling 19 points, or 0.17 per cent, to 10,998.00 in morning trade.

In the previous session, the Sensex settled 74.48 points, or 0.20 per cent, lower at 37,328.01. The Nifty too ended 36.90 points, or 0.33 per cent, down at 11,017.

Top laggards in the Sensex pack included Tata Motors, Yes Bank, Vedanta, ONGC, Tata Steel and HCL Tech, which fell up to 3 per cent.

While, Hero MotoCorp, Infosys, M&M, TechM and Maruti rose up to 1 per cent.

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The Nifty has lost almost a 1,000 in the past three months and market sentiments continue to remain weak in the near term, said Hemang Jani, Head – Advisory, Sharekhan by BNP Paribas.

“Domestic markets continue to reel under pressure of slowing growth and the street consensus is that the government may come up with a special package to boost the economy,” he added.

Foreign portfolio investors bought shares worth a net of Rs 373.23 crore Tuesday, and domestic institutional investors too purchased shares worth Rs 296.41 crore, provisional data showed.

The rupee, meanwhile, appreciated 17 paise against its previous close to trade at 71.54 in early session.

Elsewhere in Asia, bourse in Hong Kong, Korea, Shanghai and Japan were trading on a mixed note in their respective late morning sessions.

Exchanges on Wall Street ended in the red on Tuesday.

Global oil benchmark Brent crude was trading 0.52 per cent higher at 60.34 per barrel.

Rupee opens 23 paise higher at 71.48 against USD in early trade

The rupee rebounded from six-month low level and appreciated by 23 paise to 71.48 against the US dollar in early trade on Wednesday tracking gains in Asian currencies and fresh foreign fund inflows.

On Tuesday, the rupee had closed at a new six-month low of 71.71 against the US dollar as economic uncertainties continued to weigh.

At the interbank foreign exchange, the rupee opened at 71.48, registering a rise of 23 paise over its previous close of 71.71.

The domestic unit pared some gains and was trading at 71.57 against the dollar at 0951 hrs.

Forex traders said Asian currencies including South Korean won, Malaysian ringgit, Indonesian rupiah, Taiwan dollar and Philippines peso were trading higher. Moreover, the latest remark by the US President Donald Trump also enthused investors, they added.

Trump on Tuesday said that short-term recession might simply be the cost of waging his much-needed trade war with China.

“China wants to make a deal, and that’s good. But they have to make a deal that fair to us,” Trump told reporters in the Oval Office.

Market participants however said cautious opening in domestic equity market, rising crude oil prices weighed on local currency.

Foreign institutional investors (FIIs) remained net buyers in the capital market, putting in Rs 373.23 crore on Tuesday, according to provisional exchange data.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03 per cent to 98.22.

Brent crude futures, the global oil benchmark, rose 0.52 per cent to trade at USD 60.34 per barrel.

Domestic bourses opened on a cautious note on Wednesday with benchmark indices Sensex trading 11.28 points lower at 37,316.73 and Nifty down 8.60 points at 11,008.40.

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The 10-year government bond yield was at 6.57 per cent in morning trade.