Sensex, Nifty start on tepid note on weak global cues, uncertainty over US-China trade deal; Infosys, Bharti Airtel, SBI among major losers

  • After jumping over 100 points in opening session, the 30-share index pared gains to trade 19.98 points, or 0.05 percent, higher at 40,365.06

  • The broader NSE Nifty advanced 9.40 points, or 0.07 percent, to 11,922.85. Top gainers in the Sensex pack included Yes Bank, TCS, RIL, HCL Tech, Asian Paints, HUL and HDFC Bank, rising up to 2.05 percent

  • The Indian rupee depreciated 30 paise to 71.77 against the US dollar in early trade on Wednesday amid rising concerns over the US-China trade deal and political unrest in Hong Kong

The Sensex and Nifty started on a cautious note on Wednesday as weakness in global equities led by uncertainty over US-China trade deal and political unrest in Hong Kong kept investors on edge.

After jumping over 100 points in opening session, the 30-share index pared gains to trade 19.98 points, or 0.05 percent, higher at 40,365.06.

Similarly, the broader NSE Nifty advanced 9.40 points, or 0.07 percent, to 11,922.85. Top gainers in the Sensex pack included Yes Bank, TCS, RIL, HCL Tech, Asian Paints, HUL and HDFC Bank, rising up to 2.05 percent.

On the other hand, Infosys, Bharti Airtel, SBI, Bajaj Finance, ICICI Bank, HDFC and ITC fell up to 1.37 percent.

On Monday, the Sensex ended 21.47 points, or 0.05 percent, higher at 40,345.08. Similarly, the Nifty closed with a gain of mere 5.30 points, or 0.04 percent, at 11,913.45.

 Sensex, Nifty start on tepid note on weak global cues, uncertainty over US-China trade deal; Infosys, Bharti Airtel, SBI among major losers

Representational image. Reuters.

India’s industrial output fell at the fastest pace in over six years in September, adding to a series of weak indicators that suggests the country’s economic slowdown is deep-rooted and interest rate cuts alone may not be enough to revive growth.

“Investors are expecting details about stake sale in some PSUs from today’s cabinet meeting,” said A.K. Prabhakar, head of research at IDBI Capital in Mumbai to Reuters.

“Despite the bad data, the market has not reacted negative as the slowdown was already priced in. Now, investors are expecting the government to lower taxes and help in ease of doing business.”

The NSE Nifty 50 index was up 0.2 percent at 11,936 as of 0411 GMT

The S&P BSE Sensex was 0.1% higher at 40,386.

Nifty realty index rose for a fourth straight session, gaining 0.5% as the government last week approved 100 billion rupees ($1.41 billion) for a fund to help clear stalled housing projects.

Foreign institutional investors purchased shares worth Rs 664.20 crore in the capital market in the previous session, while domestic institutional investors sold equities worth Rs 245.06 crore, data available with stock exchange showed.

According to traders, weak factory output numbers and negative cues from other Asian equities weighed on investor sentiment.

Showing signs of sluggishness in the economy, industrial production shrank by 4.3 percent in September, registering the weakest performance in seven years due to output decline in manufacturing, mining and electricity sectors, as per official data released on Monday.

According to the Central Statistics Office data, 4.3 percent contraction is the lowest in 2011-12 series of Index of Industrial Production (IIP), which was unveiled in May 2017. The IIP had declined by 0.7 percent in April 2012.

Factory output, measured in terms of IIP, had expanded by 4.6 percent in September 2018.

On the currency front, the rupee also depreciated 19 paise (intra-day) against the US dollar to trade at 71.66 in the early session.

The market is now awaiting cues from consumer price inflation data, which is scheduled to be released later in the day.

The Indian rupee depreciated 30 paise to 71.77 against the US dollar in early trade on Wednesday amid rising concerns over the US-China trade deal and political unrest in Hong Kong.

At the interbank foreign exchange, the rupee opened at 71.75 against the US dollar, then further slipped to 71.77, showing a decline of 30 paise over its previous closing.

On Monday, the local unit had closed at 71.47 against the US dollar.

On the global front, spooking global investors, US President Donald Trump dubbed China a cheater on trade even as he seeks an initial settlement to calm an 18-month trade war, raising questions over the much-anticipated truce deal.

Globally, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading up to 1.76 percent lower amid political protests in Hong Kong.

Stock exchanges on Wall Street ended on a positive note on Tuesday.

Brent futures, the global oil benchmark, fell 0.29 percent to $61.88 per barrel.

--With agency inputs

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Updated Date: Nov 13, 2019 11:20:40 IST