Mumbai: Equity benchmark BSE Sensex turned volatile on Monday, dropping over 150 points in the opening session amid stock-specific action after a rejig of its constituents.
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Yes Bank, Vedanta, Tata Motors and Tata Motors DVR have exited the index to make way for Titan Company, UltraTech Cement and Nestle India.
The 30-share BSE index was trading 60.68 points or 0.15 percent lower at 41,620.86 in early session.
Similarly, the broader NSE Nifty fell 11.05 points or 0.09 percent to 12,260.75.
Titan was the top gainer in the Sensex pack, rising up to 2 percent after its inclusion in the index. Kotak Bank, Tata Steel, UltraTech Cement, ONGC, HUL and TCS were also trading in the green.
On the other hand, RIL was the top loser, shedding up to 2.09 percent, followed by Bharti Airtel, Nestle, Bajaj Auto, Techm, HDFC Bank and ICICI Bank.
The Nifty metal index climbed 0.77 percent. Shares in Vedanta Ltd rose 1.9 percent, while JSW Steel gained 2 percent and Tata Steel Ltd added 1 percent.
In the previous session, the 30-share gauge closed 7.62 points, or 0.02 percent, higher at 41,681.54. Similarly, the broader NSE Nifty rose 12.10 points, or 0.09 percent, to its new record of 12,271.80.
Meanwhile, on a net basis, foreign institutional investors (FIIs) bought equities worth Rs 338.86 crore, while domestic institutional investors sold shares worth Rs 285.41 crore on Friday, data available with stock exchange showed.
According to experts, the Sensex reshuffle can lead to some price movements as fund managers adjust their portfolios.
Further, investors will also track Reserve Bank of India's special Rs 10,000-crore open market operation (OMO) on Monday.
Such exercises are done by the central bank when the proceeds from sale of short-term securities are used to buy long-term government securities or bonds in a bid to bring down interest rates on long-term securities.
Market may witness a short-term consolidation as investors may slid to a holiday mood, traders said.
Asian shares hold near 18-month highs
Asian markets idled near 18-month highs on Monday as volumes weakened ahead of the Christmas holiday break and investors squared off their positions, taking home hefty gains made earlier this month.
MSCI’s broadest index of Asia-Pacific shares outside Japan was steady after rising 1.4% last week and over 5% this month. For the final quarter of the year, the index is up nearly 10% so far.
Japan’s Nikkei climbed 0.1 percent after reaching a 14-month top last week. It was ahead by 2.3 percent for the month so far. South Korea’s market was a shade weaker after adding 5.5 percent so far in December.
Chinese shares were slightly lower with the blue-chip CSI300 down 0.1 percent.
E-Mini futures for the S&P 500 held at all-time highs having put on 2.7 percent for the month.
Global stocks were “basking in the after-glow of the U.S. China trade deal and continued encouraging signs of stabilisation in the global growth slowdown,” said David Bassanese, Sydney-based chief economist at Betashares.
Rupee slips 5 paise to 71.17 against dollar
Meanwhile, the rupee opened on a flat note and fell 5 paise to 71.17 against the US dollar in early trade on Monday tracking muted opening in domestic equities.
At the interbank foreign exchange, the rupee opened at 71.15 then fell to 71.17 against the US dollar, showing a decline of 5 paise over its previous closing.
The Indian rupee on Friday had closed at 71.12 against the US dollar.
Brent futures, the global oil benchmark, fell 0.30 percent to $65.94 per barrel.
Meanwhile, the rupee depreciated 5 paise to 71.17 against the US dollar in morning session.
— With Reuters inputs
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Updated Date: Dec 23, 2019 10:51:44 IST