Sensex, Nifty recover from early lows; Tata Motors up 5%, ICICI Bank, Axis Bank, ONGC among major gainers

  • The markets started off on a weaker note on Wednesday tracking sharp losses in Asian markets amid growing uncertainties about US-China trade deal talks.

  • Investors seem to be taking a cautious stance ahead of Reserve Bank's monetary policy outcome, which is due on Thursday

  • Metal stocks lost shine with JSW Steel dropping by 2.7 percent, Tata Steel by 1.3 percent, Hindalco by 0.8 percent and Vedanta by 0.5 percent

Sensex and Nifty, the benchmark indices, recovered from opening lows around 10.30 AM today. Sensex recoved from early lows to 62.89 points or 0.15% at 40738.34. Nifty was up 19.70 points or 0.16 percent at 12013.90.

The markets started off on a weaker note on Wednesday tracking sharp losses in Asian markets amid growing uncertainties about US-China trade deal talks. Besides, investors seem to be taking a cautious stance ahead of Reserve Bank's monetary policy outcome, which is due on Thursday, a PTI report said. The 30-share BSE gauge Sensex was down 119.42 points or 0.29 percent to 40,556.03 in early deals. Likewise, the 50-scrip NSE Nifty fell 36.90 points or 0.31 percent to 11,957.30 in early trade. Exchange data showed foreign institutional investors (FIIs) sold equities worth Rs 1,131.12 crore on Tuesday.

Experts said investors are worried after US President Donald Trump said that a trade deal with China might have to wait until after the 2020 presidential polls.

 Sensex, Nifty recover from early lows; Tata Motors up 5%, ICICI Bank, Axis Bank, ONGC among major gainers

Representational image. Getty

Among stocks, Bharti Infratel gained by 3.5 percent to Rs 257.10 per share while Tata Motors ticked up by 3 percent. Private lenders ICICI Bank and Axis Bank showed gains of 1.4 percent and 0.9 percent.

The other prominent gainers were Eicher Motors, Mahindra & Mahindra, Wipro, Tata Consultancy Services, Adani Ports, ONGC and Hindustan Lever.

However, metal stocks lost shine with JSW Steel dropping by 2.7 percent, Tata Steel by 1.3 percent, Hindalco by 0.8 percent and Vedanta by 0.5 percent. Reliance Industries was down by 0.7 percent to Rs 1,567.60 per share.

On Tuesday, the BSE Sensex settled at 40,675.45, down 0.31 percent or 126.72 points; while, the Nifty closed at 11,994.20, showing a dip of 0.45 percent or 54 points.

Rupee trades 10 paise lower

The Indian rupee opened on a weak note and fell 12 paise to 71.78 against the US dollar in early trade on Wednesday, amid weak opening in domestic equities and sustained foreign fund outflows.

Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.

At the interbank foreign exchange, the rupee opened weak at 71.76 then fell to 71.78 against the US dollar, showing a decline of 12 paise over its previous closing.

The Indian rupee on Tuesday had closed at 71.66 against the US dollar, according to a PTI report.

Bankers and experts believe the Reserve Bank may cut interest rates for the sixth straight time on December 5, to support growth that has continued to slip.

Traders said rupee is trading in a narrow range as market is awaiting fresh cues on the potential US-China trade deal.

US President Donald Trump has announced imposition of tariffs on imports from Brazil and Argentina as well as indicated that a deal with China might not be happening till next year's US presidential polls.

Speaking in London he is attending a NATO summit, Trump said Tuesday ''I have no deadline, no."

“In some ways I like the idea of waiting until after the election," Trump added

Asian shares extend losses

Asian shares extended their losses on Wednesday after US President Donald Trump said a trade deal with China might have to wait until after the 2020 presidential election, dashing hopes for a quick preliminary agreement, according to Reuters.

Fresh US tariffs on Argentina and Brazil, as well as threatened duties on French goods, also darkened the mood, as a trade war that appeared to be winding down a week ago now looks like ramping up.

Investors turned to safe-havens, boosting bond prices and sending gold to a one-month high, while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.9%.

Japan's Nikkei .N225 dropped 1.2%, matched by falls in Hong Kong and Korea , where stock markets hit their lowest since October.

Shanghai blue chips fell 0.2 percent and Australia's S&P/ASX200 tumbled 1.7%, having shed almost 4 percent since closing on Monday.

The yield on benchmark US 10-year treasuries fell as low as 1.6930 percent overnight, the sharpest fall since May. It stood at 1.7242 percent on Wednesday.

“Suddenly you can feel the market,” said Sean Taylor, chief investment officer for Asia-Pacific at German asset management firm DWS, calling trade the top threat to the global outlook.

“It just takes one or two comments and then a bad feeling again,” he said. “It’s still quite uncertain.”

Trump had told reporters in London that there is “no deadline” for an agreement with China to end the tit-for-tat tariff war, which the International Monetary Fund has said will push global growth to its slowest in a decade.

“In some ways, I like the idea of waiting until after the election for the China deal,” he said.

US Commerce Secretary Wilbur Ross said if no substantial progress was made soon, another round of duties on Chinese imports including cell phones, laptops and toys would take effect on 15 December.

--With inputs from agencies

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Updated Date: Dec 04, 2019 10:50:10 IST