Sensex drops 56 points, Nifty turns choppy on weak Asian cues; TCS top gainer post-Q1 results

Mumbai: The benchmark BSE Sensex opened 59.64 points higher, but soon turned choppy in early trade, as investors cashed profits in metal, healthcare, PSU, and auto stocks, amid weak Asian cues after US-China trade spat escalated.

After opening on a positive note, the BSE 30-share barometer dropped by 56.15 points, or 0.15 percent, to 36,183.47 led by fall in index majors Hero Motorcorp, Vedanta, Coal India and RIL shares.

The gauge had rallied 665.07 points in the previous three sessions on sustained buying by domestic institutional investors (DIIs). However, a rise in shares of index heavyweight TCS capped Sensex losses, after the IT major posted reported better-than-expected earnings. It was the top gainer in the Sensex pack, rising 2.02 percent to Rs 1,915.

The NSE Nifty index also fell by 17.40 points, or 0.16 percent, at 10,929.85.

Other gainers were Asian Paints, HDFC, Adani Ports, M&M, Bajaj Auto, Axis Bank, Wipro, HUL, Sun Pharma, ONGC, Yes Bank and IndusInd Bank, rising up to 0.86 percent.

 Sensex drops 56 points, Nifty turns choppy on weak Asian cues; TCS top gainer post-Q1 results

Stock brokers. Getty Image

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 20.73 crore, while DIIs bought shares worth a net Rs 293.96 crore yesterday, provisional data showed.

A weak trend other in Asian bourses and sustained capital outflows weighed on investor sentiments here, brokers said.

Asian stocks declined after the Trump administration released the biggest list yet of Chinese goods it may hit with tariff increases.

Japan's Nikkei fell 1.37 percent, while Hong Kong's Hang Seng shed 1.68 percent in early deals. Shanghai Composite Index was down 0.76 percent.

The US Dow Jones Industrial Average ended 0.58 percent higher in yesterday's trade.

Rupee slips 5 paise to 68.87 against US dollar

Extending losses for the second session, the rupee weakened by 5 paise to trade at 68.87 against the US dollar in early trade today on sustained capital outflows as the greenback strengthened overseas.

Forex dealers said besides increased demand for the US currency from importers, persistent outflows by foreign funds and the dollar's strength against some other currencies overseas, an escalating trade spat between the US and China also weighed on the rupee.

Yesterday, the rupee ended lower by 10 paise to close at 68.82 against the US currency due to fresh buying of the dollar by importers after the greenback rebounded in global markets.

Meanwhile, the benchmark BSE Sensex opened 59.64 points higher, or 0.16 percent, at 36,299.26, but soon turned choppy.


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Updated Date: Jul 11, 2018 10:33:25 IST