The BSE Sensex dropped over 150 points on Thursday tracking losses in banking stocks amid unabated foreign fund outflow.
The 30-share index was trading 170.98 points, or 0.45 percent, lower at 38,006.97 at 0930 hours. Similarly, the broader NSE Nifty fell 48.60 points, or 0.43 percent, to 11,264.70.
#CNBCTV18Market | Market opens in the red after yesterday's rally, Banks underperform peers; top 3 out of 5 Nifty losers are banks
— CNBC-TV18 (@CNBCTV18Live) October 10, 2019
Top losers in the Sensex pack during the early session included SBI, ICICI Bank, Tata Motors, Yes Bank, Tata Steel, Axis Bank, HDFC twins, M&M, Bajaj Finance and IndusInd Bank, shedding up to 2.66 percent.
On the other hand, Bharti Airtel, RIL, Infosys, TCS and Sun Pharma advanced up to 5 percent.
In the previous session, the BSE barometer surged 645.97 points or 1.72 percent to end at 38,177.95, while the Nifty zoomed 186.90 points or 1.68 percent to 11,313.30.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 485.24 crore on Wednesday, while domestic institutional investors bought shares worth Rs 956.26 crore, data available with the stock exchange showed, PTI said.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading on a positive note in early trade amid hopes of a trade deal between the US and China as they hold the next round of trade negotiations on October 10. Exchanges in Seoul were trading in the red, Reuters said.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat while Japan's Nikkei gained 0.3 percent
Global stocks recouped early losses as news reports raised hopes that the US and China would settle some economic disputes, but investors were kept on edge by an earlier report that trade talks due to begin on Thursday could be cut short.
US S&P500 mini futures traded down 0.2 percent, with a big part of early losses cut after the New York Times reported Washington will soon issue licences allowing some US firms to supply non-sensitive goods to China's Huawei Technologies.
Another report, from Bloomberg, that the White House is looking at rolling out a previously agreed currency pact with China, also raised hopes of a partial deal and helped to lift risk assets.
MSCI's broadest index of Asia-Pacific shares outside Japan were flat while Japan's Nikkei gained 0.3 percent. Shanghai shares also rose 0.35 percent.
Earlier US stock futures slumped as much as 1.3 percent, as the South China Morning Post (SCMP) reported the Chinese delegation, headed by Vice-Premier Liu He, was planning to leave Washington after just a day of minister-level meetings, instead of as originally planned on Friday.
Top negotiators from the two countries were scheduled to meet in Washington on Thursday and Friday to try to end a bruising 15-month-old trade war.
Though there were some conflicting reports on whether Liu's plans have been changed, many market players remained cautious.
Without significant progress, US President Donald Trump is set to hike the tariff rate on $250 billion worth of Chinese goods to 30 per cent from 25 per cent next Tuesday.
“Barring any surprise today, it looks like their talk is breaking down. The tariff will be hiked. The situation looks dire,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
The SCMP report on the US-China trade talks came less than a couple of hours after Trump told presspersons he thought China wanted to make a trade deal more than he did.
Chinese government officials told Reuters that Beijing has lowered expectations for significant progress from this week's trade talks with the US, upset by the blacklisting of Chinese companies.
China is unlikely to be willing to make an easy compromise with a US president, who seems increasingly vulnerable to domestic political pressure as opposition Democrats seek to impeach him, Mitsubishi's Fujito added.
US Democratic presidential contender Joe Biden called for the impeachment of Trump for the first time in a deepening partisan fight over a congressional investigation of the Republican president.
US stocks climbed on Wednesday as investors pored through the newly-released Federal Reserve minutes while expecting the upcoming trade talks between the US and China.
The Dow Jones Industrial Average rose 181.97 points, or 0.70 percent, to 26,346.01. The S&P 500 advanced 26.34 points, or 0.91 percent, to 2,919.40. The Nasdaq Composite Index increased 79.96 points, or 1.02 percent, to 7,903.74, Xinhua reported.
All of the 11 primary S&P 500 sectors traded on an upbeat note throughout the session, with technology up 1.45 percent at the close, outpacing the rest.
Stocks on Wall Street ended on a positive note on Wednesday.
The rupee, meanwhile, appreciated 5 paise against its previous close to trade at 71.02 in early session.
Brent futures, the global oil benchmark, fell 0.17 percent to $58.22 per barrel.
Oil prices fell on Thursday on concerns of lower fuel demand as talks this week between the United States and China, the world’s two largest oil users, are not expected to help end the trade war between them, adding to anxieties about the global economy.
China, the world’s biggest oil importer, has lowered its expectations for talks on Thursday and Friday to end the 15-month-old trade dispute with the United States. US. President Donald Trump is set to raise the tariff rate on about $250 billion of Chinese goods to 30% from 25% on Oct. 15 if some signs of progress are not seen.
The trade dispute between the world’s two largest economies has disrupted global supply chains and slowed the growth of both countries, limiting the growth of their fuel consumption.
Global benchmark Brent crude futures fell 11 cents, or 0.2 percent, to $58.21 a barrel by 0354 GMT, while USWest Texas Intermediate futures CLc1 were down 11 cents, or 0.2 percent, at $52.48 per barrel.
“Should US-China trade negotiations take a turn for the worst, market pessimism will impose sharp negative pressures on oil prices, said Benjamin Lu, commodities analyst at Phillip Futures in Singapore.
Prices were also weighed down by a report of rising stockpiles in the United States, which is also currently the world’s biggest oil producer.
U.S. crude stocks rose 2.9 million barrels in the week to Oct. 4, the Energy Information Administration (EIA) said on Wednesday, more than double analysts’ expectations of an increase of 1.4 million barrels. [EIA/S]
Additionally, the Organization of the Petroleum Exporting Countries (OPEC) quietly adjusted its production pact to allow Nigeria to raise its output, adding more supply.
OPEC member Venezuela will also increase its exports despite US economic sanctions that have curtailed shipments from the country.
Indian refiner Reliance Industries Ltd plans to start loading Venezuelan crude after a four-month pause, in a further sign of expanding crude supply to the market.
--With agency inputs
Updated Date: Oct 10, 2019 10:29:21 IST