Benchmark sensex declined by over 148 points in early trade on Tuesday, tracking a weak trend in global markets as the trade spat between the US and China intensified. Unabated capital outflows by foreign funds and profit-booking by retail investors too dampened sentiment. The 30-share index, which had lost 73.88 points in the previous session, drifted down by 148.34 points, or 0.42 per cent, to 35,399.92.
The NSE Nifty too was quoting lower by 52.55 points, or 0.49 per cent, at 10,747.30. All sectoral indices, led by oil and gas, power, realty and power were in the negative zone, falling up to 1.31 per cent. The laggards included Vedanta, HUL, Infosys, Bajaj Auto, Wipro, Coal India, Hero MotoCorp, NTPC, Maruti Suzuki, RIL, ICICI Bank, PowerGrid and IndusInd Bank, falling by up to 1.64 per cent.
Stocks of oil marketing companies such as HPCL, BPCL and IOC, which had a good day on Monday, came under selling pressure in line with the overall trend and fell up to 3 per cent. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net of Rs 754.43 crore, while domestic institutional investors (DIIs) bought shares worth Rs 824.10 crore on Monday, provisional data showed.
Global markets were rattled after US President Donald Trump unveiled plans to impose 10 per cent tariffs on $200 billion worth of Chinese goods on top of the previous punitive measures over Beijing’s “unacceptable” move to raise its own tariffs. In Asia, Hong Kong’s Hang Seng index tumbled 2.20 per cent, while Japan’s Nikkei shed 0.82 per cent in early trade today. Shanghai Composite too declined 2.58 per cent. The US Dow Jones ended 0.41 per cent lower in yesterday’s trade.
Rupee slides 4 paise to 68.03 against US dollar
The rupee traded lower by 4 paise at 68.03 against the US dollar in early trade today, pressured by a lower opening in the domestic stock market. Increased demand for the American currency from importers and banks amid persistent foreign fund outflows also weighed on the rupee.
Foreign portfolio investors (FPIs) sold shares worth Rs 754.43 crore yesterday, as per provisional data. Forex dealers said the euro and yen rising against the greenback, however, capped the rupee’s fall. On Monday, the rupee had settled marginally up by 2 paise at 67.99 against the US currency. Meanwhile, the benchmark Sensex moved down by 88.12 points, or 0.25 per cent, at 35,460.14 in opening trade today.