HW English
sensex
Capital Markets

Sensex, Nifty turn negative on weak global cues

Mumbai | The BSE benchmark Sensex on Friday started on a negative note tracking weak cues from other Asian markets amid heavy selling by domestic institutional investors and depreciating rupee.

After falling over 100 points, the 30-share index was trading 64.70 points, or 0.18 percent, to 36,660.72. Similarly, the 50-share NSE Nifty fell 19.90 points, or 0.18 percent, to 11,038.30.

Sensex had climbed 89.32 points or 0.24 percent to finish at 36,725.42 in the previous session, while the broader NSE Nifty inched up 5.20 points or 0.05 percent to 11,058.20.

Top losers in the Sensex pack in early session include Tata Motors, HCL Tech, Vedanta, Infosys, ONGC, Tata Steel, Hero MotoCorp, Maruti, Asian Paints and RIL, falling up to 2.30 percent. On the other hand, NTPC, M&M, Bajaj Auto, ITC, Bharti Airtel, Sun Pharma, SBI, HUL, TCS and L&T were among the top gainers, rising up to 2.64 percent.

Meanwhile, on a net basis, foreign institutional investors (FIIs) bought shares worth a net of Rs 1,137.85 crore on Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 925.46 crore, provisional data available with BSE showed.

According to traders, heavy DII outflow, weak global cues after the European Central Bank (ECB) has slashed its forecast for economic growth and inflation in the 19-country eurozone, and depreciating domestic currency against the US dollar weighed on investor sentiment here.

The ECB now expects growth of 1.1 percent this year, down from its earlier forecast for 1.7 percent. Inflation is also expected to be lower, at 1.2 percent compared with 1.6 percent forecast earlier.

The central bank’s President Mario Draghi announced the reduction after Thursday’s policy meeting, where the bank took several steps to support a weakening economy.

Elsewhere in Asia, Hong Kong’s Hang Seng fell 1.48 percent, Shanghai Composite Index cracked 2.90 percent higher, Kospi was down 1.04 percent, and Japan’s Nikkei dropped 1.83 percent in early trade.

On Wall Street, Dow Jones Industrial Average ended 0.78 percent lower on Thursday. The rupee, meanwhile, was depreciated 13 paise against US dollar to 70.13. The benchmark Brent crude futures slipped 0.71 percent to USD 65.83 per barrel.

Related posts

Asian shares higher as region eyes Trump-Kim summit

PTI

Sensex posts biggest gains in 6 months, reclaims 37K mark in pre-poll rally

PTI

Sensex drops over 200 pts; Nifty slips below 10,900

PTI