Domestic equity benchmarks BSE Sensex and NSE Nifty opened on a choppy note Wednesday amid weak global cues and continued foreign fund outflow.
The 30-share index was trading 4.40 points, or 0.01 per cent, lower at 39,126.64 at 0930 hours, while the broader Nifty inched 2.20 points, or 0.02 per cent, higher to 11,664.80.
Top gainers in the Sensex pack included Kotak Bank, TechM, Asian Paints, HCL Tech, Bajaj Finance and Yes Bank, rising up to 1.32 per cent.
On the other hand, Tata Motors, Tata Steel, Hero MotoCorp, Maruti, Sun Pharma, TCS and Infosys fell up to 1.27 per cent. In the previous session, the 30-share gauge closed at 39,131.04 points, showing a rise of 234.33 points or 0.60 per cent; while the Nifty ended 74.25 points or 0.64 per cent up at 11,662.60.
On a net basis, foreign institutional investors sold equities worth Rs 444.99 crore, while domestic institutional investors purchased shares to the tune of Rs 637.71 crore, provisional data available with stock exchanges showed Tuesday.
According to traders, investors are cautious ahead of key earnings, amid weak cues from other global markets and unabated foreign fund outflow.
Mindtree, Wipro, Yes Bank, Tata Elxsi and Dhanlakshmi Bank are among a few companies which will report June quarter results later in the day.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the red in their respective early sessions.
The rupee opened on a cautious note and fell 9 paise to 68.80 against the US dollar in early trade Wednesday amid rising crude oil prices and foreign fund outflows.
At the Interbank Foreign Exchange, the rupee opened at 68.69 then fell to 68.80 against the US dollar, showing a decline of 9 paise over its previous closing. The Indian rupee Tuesday had closed at 68.71 against the US dollar.
Forex traders said rising brent crude prices and foreign fund inflows weighed on the domestic currency, while weakening of the greenback vis-a-vis other currencies overseas and positive opening in domestic equities added support to the local unit and restricted the downfall.
Meanwhile, brent crude futures, the global oil benchmark, rose 0.30 per cent to USD 64.54 per barrel. Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 444.99 crore Tuesday, as per provisional data.
Domestic bourses opened on a cautious note Wednesday with benchmark indices Sensex trading 75.05 points up at 39,206.09 and Nifty up 21.55 points at 11,684.15.
Meanwhile, on the global front, the Trump administration has said that there is an “enormous potential” for growth in the India-US relationship and has exuded confidence that the ongoing trade issues could be worked through because of the friendship between the two nations.
“As it relates to our trade relationship, the secretary (of state) has said this as well when we were in India: that we see a lot of opportunity for growth in our relationship. We see enormous potential,” State Department Spokesperson Morgan Ortagus told reporters at a news conference on Tuesday.