Markets start on tepid note: Sensex slips 37.41 points, Nifty below 12,000-mark; Bharti Airtel, Yes Bank among top losers

  • Domestic equity benchmarks opened on a tepid note on Thursday as fresh concerns over the US-China trade deal kept global investors on edge

  • Top losers in the Senses pack included Bharti Airtel which fell up to 1.51 percent, Axis Bank 1.12 percent, Yes Bank 0.68 percent, RIL 0.56 percent and M&M 0.43 percent

  • The Indian rupee opened on a cautious note and fell 8 paise to 71.89 against the US dollar in early trade on Thursday tracking muted opening in domestic equities.

The market started on a tepid note with the Sensex dipping 37.41 pts to 40,614.23 in the opening session. The Nifty was below the 12,000-mark.

Domestic equity benchmarks opened on a tepid note on Thursday as fresh concerns over the US-China trade deal kept global investors on edge, according to a PTI report.

After opening slightly higher, the 30-share index turned negative to trade 41.31 points, or 0.10 percent, lower at 40,610.33. Similarly, the broader Nifty slipped 17.75 points, or 0.15 percent to 11,981.35. Top losers in the Senses pack included Bharti Airtel which fell up to 1.51 percent, Axis Bank 1.12 percent, Yes Bank 0.68 percent, RIL 0.56 percent and M&M 0.43 percent.

On the other hand, L&T rose up to 2.21 percent, IndusInd Bank 1.54 percent, HCL Tech 1.22 percent and SBI 1.20 percent.

On Wednesday, the Sensex ended 181.94 points, or 0.45 percent, higher at 40,651.64, while the Nifty closed a tad below the crucial 12,000-mark, advancing 59 points, or 0.49 percent, to end at 11,999.10. Foreign institutional investors bought shares worth Rs 566.52 crore in the capital market in the previous session, while domestic institutional investors purchased equities worth Rs 183.41 crore, data available with stock exchange showed.

Rupee slips 8 paise

The Indian rupee opened on a cautious note and fell 8 paise to 71.89 against the US dollar in early trade on Thursday tracking muted opening in domestic equities.

At the interbank foreign exchange, the rupee opened at 71.83 then fell to 71.89 against the US dollar, showing a decline of 8 paise over its previous closing.

The Indian rupee on Wednesday had closed at 71.81 against the US dollar.

Traders were also awaiting fresh cues on the potential US-China trade deal

Shares stumble as China-US row over Hong Kong clouds trade deal outlook

Global shares slid on Thursday as a fresh row between Washington and Beijing over US bills on Hong Kong could complicate their trade negotiation and delay a “phase one” deal that investors had initially hoped to be inked by now, according to.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.2 percent, with Hong Kong's Hang Seng shedding 2 percent while Japan's Nikkei dropped 1.6 percent. Chinese mainland shares dropped 0.6 percent.

US S&P 500 futures dropped 0.5 percent in Asian trade, a day after MSCI's broadest gauge of world stocks fell 0.4 percent, the biggest fall since early October. On Wall Street, all three major indexes fell, with the S&P 500 losing 0.38 percent.

The US House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights.

The legislation, which has angered Beijing, has been sent to the White House for President Donald Trump’s approval. A person familiar with the matter said Trump was expected to sign it.

“China will surely take this as interference into its domestic affairs and is likely to think it will no longer need to make concessions on trade,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

The move came as trade experts and people close to the White House said completion of a “phase one” US-China trade deal could slide into next year, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with heightened demands of its own.

Trump said on 11 October that the deal could take as long as five weeks, and investors had initially expected an agreement by mid-November.

Asked Wednesday about the status of the China deal, Trump told reporters in Texas: “I don’t think they’re stepping up to the level that I want.”

Trade jitters sent the 10-year US Treasuries yield down to 1.707 percent, near its lowest levels in three weeks and down more than 25 basis points from a Nov. 7 peak of 1.973 percent, a three-month high.

Similarly in the currency market the yuan hit three-week lows, trading as low as 7.0450 to the dollar in onshore trade.

The dollar slipped 0.3 percent against the yen to 108.31, compared to this week's high of 109.07 touched on Monday, while safe-haven gold edged up 0.26% to $1,474.9 per ounce.

The euro was little changed at $1.1075.

Tomoo Kinoshita, chief economist at Invesco Asset Management in Tokyo, said the market is unlikely to completely give up hopes on the trade deal.

“There have always been some uncertainties in trade talks but that won’t erase positive effects from signs of bottoming out in the global manufacturing sector,” he said.

The minutes from the Federal Reserve’s previous policy meeting published on Wednesday offered little guidance on what would cause policymakers to change their minds on the outlook after an increasingly divided Fed decided to hit pause in its easing cycle.

Oil prices also dipped, paring some of their 2 percent gains made on Wednesday after a better-than-expected US crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the market balanced.

Global benchmark Brent futures dropped 0.4 percent to $62.16. US West Texas Intermediate (WTI) crude futures were down 0.39 percent at $56.79 per barrel in early Thursday trade.

--With inputs from agencies

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

Updated Date: Nov 21, 2019 10:29:23 IST