Markets start on a volatile note amid foreign fund outflow, weak global cues; Sun Pharma, IndusInd Bank among top losers

  • ITC, Bharti Airtel, SBI, PowerGrid, Hero MotoCorp, Vedanta and L&T rose up to 1.23%

  • According to traders, rising fears of global recession and escalating US-China trade war kept market participants jittery

  • On Tuesday, FPIs sold shares worth a net of Rs 2,016.20 crore, while DIIs purchased shares worth Rs 1,251.35 crore

Domestic equity markets opened on a highly volatile note on Wednesday tracking heavy foreign fund outflow and mixed cues from global markets amid rising fears of an impending recession and escalation in US-China trade war.

After swinging over 200 points in the first 15 minutes of the session, the 30-share index was trading 23.04 points or 0.06 percent at 36,585.95 higher at 36,551.78 at 10 am, while the broader Nifty rose 14.70 points or 0.14 percent at 10,812.60.

In the previous session on Tuesday, the BSE barometer ended 769.88 points, or 2.06 percent, lower at 36,562.91, while the Nifty sank 225.35 points, or 2.04 percent, to settle at 10,797.90.

Top losers in the Sensex pack in early trade on Wednesday included Sun Pharma, IndusInd Bank, Asian Paints, RIL, Maruti and Tata Motors, which fell up to 4 percent.

 Markets start on a volatile note amid foreign fund outflow, weak global cues; Sun Pharma, IndusInd Bank among top losers

Representational image. Reuters.

On the other hand, ITC, Bharti Airtel, SBI, PowerGrid, Hero MotoCorp, Vedanta and L&T rose up to 1.23 percent.

On Tuesday, foreign portfolio investors (FPIs) sold shares worth a net of Rs 2,016.20 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 1,251.35 crore, provisional data showed.

According to traders, besides heavy foreign fund outflow, continually rising fears of a global recession and the escalating trade war between the US and China kept market participants jittery.

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Korea were trading on a positive note in their respective late morning sessions, while those in Japan were in the red.

On Wall Street, stock exchanges ended significantly lower on Tuesday.

Investor sentiment was also weak amid deceleration of economic growth due to fall in consumption and subdued manufacturing activity diminished the scope for a turnaround in the near-term, said Vinod Nair, Head of Research, Geojit Financial Services.

The rupee, meanwhile, recovered 11 paise against its previous close to trade at 72.28 in early session.
Global oil benchmark Brent crude was trading 0.17 percent higher at 58.36 per barrel.

With PTI inputs

Updated Date: Sep 04, 2019 11:23:58 IST