Sensex slips over 50 points in early trade, Rupee gains 11 paise to 70.81 vs USDhttps://indianexpress.com/article/business/sensex-slips-over-50-points-in-early-trade-rupee-gains-11-paise-to-70-81-vs-usd-5611407/

Sensex slips over 50 points in early trade, Rupee gains 11 paise to 70.81 vs USD

The rupee appreciated by 11 paise to 70.81 against the US dollar in opening trade Tuesday, driven by weakening of the greenback in overseas markets and fresh foreign inflows.

Sensex slips over 50 points in early trade, Rupee gains 11 paise to 70.81 vs USD
In the Sensex pack, weakness was seen primarily in capital goods, IT and financial counters.

Equities benchmark Sensex edged lower by over 50 points in early trade on Tuesday, tracking weak global cues amid caution on the US-China trade talks front and concerns over slowing Chinese economy.

The 30-share BSE index was trading lower by 0.14 per cent, or 50.71 points, at 36,013.10 in the opening trade. The broader NSE Nifty was also quoted down by 0.13 per cent, or 14.60 points, at 10,848.90.

In the Sensex pack, weakness was seen primarily in capital goods, IT and financial counters. Indian equities followed the weak trend prevailing on Asian bourses as investors awaited fresh developments in the China-US trade talks.

China lowering its growth forecasts for this year also played in the minds of cautious investors. Globally, investors tracked losses on Wall Street, where the global rally hit a bump as optimism that the world’s top two economies are heading for a tariffs deal was replaced by a need for clarity on any agreement.

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In Asia, Shanghai was down 0.2 per cent while Hong Kong slipped 0.6 per cent and Tokyo was 0.6 per cent lower.

Back home, the Sensex on Friday closed with 196 points gain to end at 36,064 and also posted its second straight weekly gains amid signs of easing tensions between India and Pakistan.

However, volatility erupted last week on domestic bourses after the Indian Air Force targeted Pakistan-based terror camps, leading to days-long geo-political tensions in the region. But investors now can heave a sigh of relief amid subsiding of skirmishes on the border between the two nations.

In the absence of any immediate key triggers, the domestic equity market would be guided by macro-economic data, crude oil prices, foreign fund inflows and currency movement in this holiday-shortened week, according to analysts.

Meanwhile, China has slashed its official GDP target to 6 to 6.5 per cent this year as the world’s second largest economy grapples with the ongoing trade war with the US and a continued economic slowdown.

The rupee appreciated by 11 paise to 70.81 against the US dollar in opening trade Tuesday, driven by weakening of the greenback in overseas markets and fresh foreign inflows.

The rupee opened weak at 70.95 at the interbank forex market then gained further ground and touched 70.81 amid a weak opening in domestic equities, displaying gains of 11 paise over its last close.

Forex dealers said, selling of the American currency by exporters supported the rupee. The rupee Friday had weakened by 20 paise to close at 70.92 against the US dollar.

The domestic forex market and equity market were closed Monday on account of Mahashivratri. Forex traders said, fresh foreign fund inflows and easing crude prices also supported the rupee.

Meanwhile, foreign investors (FIIs) remained net buyers in the capital markets, putting in Rs 198.38 crore on a net basis Friday, as per provisional data. Brent crude futures, the global oil benchmark, eased 0.49 per cent to USD 65.35 per barrel.

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Meanwhile, the benchmark BSE Sensex was trading lower by 42.42 points, or 0.12 per cent to quote at 36,012.39 while the NSE Nifty was trading at 10,847.45, down by 16.05 points, or 0.15 per cent.