Sensex tumbles over 150 points, Nifty down 42 points on weak global cues; Tech Mahindra, Hero MotoCorp among top losers

Tech Mahindra was the top loser in the Sensex pack, dropping up to 1.51 percent, followed by Hero MotoCorp, IndusInd Bank, Mahindra and Mahindra, ICICI Bank and HDFC twins

FP Staff December 31, 2019 10:44:37 IST
Sensex tumbles over 150 points, Nifty down 42 points on weak global cues; Tech Mahindra, Hero MotoCorp among top losers
  • Tech Mahindra was the top loser in the Sensex pack, dropping up to 1.51 percent, followed by Hero MotoCorp, IndusInd Bank, Mahindra and Mahindra, ICICI Bank and HDFC twins

  • The rupee appreciated by 8 paise to 71.23 against the US dollar in early trade on Tuesday as optimism over the US-China trade deal strengthened investor sentiments

  • Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the United States and China reached a preliminary trade deal earlier this month

The equity benchmark BSE Sensex tumbled over 150 points in the opening session on Tuesday tracking weak global cues as year-end holidays thinned trading across markets. It fell 151.12 points or 0.36 percent at 41406.88. The Nifty was down 43.40, down 0.35 percent at 12,212.45.

In opening session, the 30-share BSE index fell 108.21 points or 0.26 percent to 41,449.79, and the broader NSE Nifty slipped 28.10 points or 0.23 percent to 12,227.75.

Tech Mahindra was the top loser in the Sensex pack, dropping up to 1.51 percent, followed by Hero MotoCorp, IndusInd Bank, Mahindra and Mahindra, ICICI Bank and HDFC twins, a PTI report said.

On the other hand, Axis Bank was the top gainer, rising up to 0.42 percent. Sun Pharma, Ultratech Cement, HUL, ITC and SBI were also trading in the green.

In the previous session, the 30-share gauge ended 17.14 points, or 0.04 percent, lower at 41,558. The Nifty, however, closed 10.05 points, or 0.08 percent, higher at 12,255.85.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 130.52 crore, while domestic institutional investors purchased shares worth Rs 201.32 crore on Monday, data available with stock exchange showed.

According to experts, domestic stock market remained lacklustre as 2019 is coming to an end amid muted activity worldwide amid year-end holidays.

Rupee up

The rupee appreciated by 8 paise to 71.23 against the US dollar in early trade on Tuesday as optimism over the US-China trade deal strengthened investor sentiments.

As per media reports China's Vice-Premier Liu He, who is also the chief negotiator for trade talks with the US, will lead a delegation to Washington this weekend, during which he is expected to sign a phase one deal.

Besides, the weakening of the American currency in the overseas market supported the rupee, while a steady rise in crude oil prices and weak opening in domestic equities weighed on the local unit, forex traders said, a PTI report said.

At the interbank foreign exchange, the rupee opened at 71.28, then gathered momentum and touched 71.23 against the US dollar, registering a rise of 8 paise over its previous close.

On Monday, rupee had settled for the day at 71.31 against the US dollar.

Sensex tumbles over 150 points Nifty down 42 points on weak global cues Tech Mahindra Hero MotoCorp among top losers

Representational image. Reuters

Domestic bourses opened on a cautious note on Tuesday with benchmark indices Sensex trading 144.83 points lower at 41,413.17 and Nifty down 47.10 points at 12,208.75.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.04 percent to 96.69.

Meanwhile, Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 130.52 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.41 percent to trade at  $68.44 per barrel.

The 10-year government bond yield was at 6.54 percent in the morning trade.

"RBI has initiated the bond switch transactions recently, with an amount of Rs 10,000 crore each time. This has helped bring down the 10 Year benchmark yield by about 25 bps, but it needs to be seen to what extent this operation would help in holding the long end rates to a lower perch," said Joseph Thomas, Head of Research – Emkay Wealth Management on RBI's OMO on Monday.

Asian shares slip

Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the United States and China reached a preliminary trade deal earlier this month.

Early in the Asian trading session, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.39 percent, its weakest performance since 4 December. For the month, the index is still up 5.7 percent, according to Reuters.

The index has gained 16 percent this year, a sharp turnaround from a 16.2 percent drop last year but lagging a 23.8 percent year-to-date gain in MSCI’s global share index.

Australian shares were 1.69 percent lower and Hong Kong’s Hang Seng dropped 0.32 percent.

“We are seeing some profit-taking into year-end,” said Ryan Felsman, senior economist at CommSec in Sydney, adding that progress on resolving the 17-month-long US-China trade war remained a positive factor for investors into the new year.

The White House’s trade adviser on Monday said the US-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the US Trade Representative.

“We think that the global growth situation is improving, we’re seeing better industrial profits in China ... green shoots in the manufacturing sector on the back of an improvement in the trade situation is a key catalyst going forward,” he said.

While easing trade concerns and steps toward a resolution of Britain’s exit from the European Union have helped reduce some near-term market uncertainty, investors remain uneasy with a recession seen as inevitable in the new decade.

Positive Chinese manufacturing data, which showed factory activity in China expanded for a second straight month in December, nudged China’s blue-chip CSI300 index 0.1 percent higher, extending the more than 33 percent gain seen this year.

China’s modest gains built on Monday’s rally, which was driven by a combination of strong retail sales growth and hopes that a new benchmark for floating-rate loans could lower borrowing costs.

Markets in Japan and South Korea were closed for a holiday.

The falls in Asia came after profit-taking pushed the Dow Jones Industrial Average down 0.64 percent to 28,462.14, the S&P 500 0.58 percent lower to 3,221.29 and the Nasdaq Composite off 0.67 percent to 8,945.99.

US Treasury futures were lower, reflecting an implied yield of 1.82 percent. That followed a rise in benchmark US Treasury yields on Monday that pushed the US two-year, 10-year yield curve to its steepest in 14 months.

The dollar continued to weaken against the yen, dropping 0.12 percent to 108.73, and the euro strengthened 0.16 percent to buy $1.1215.

The dollar index, which tracks the greenback against a basket of six major rivals, was 0.06 percent lower at 96.686.

US crude dipped 0.18 percent to $61.57 a barrel and Brent crude shed 0.15 percent to $66.57 per barrel.

Gold continued its rally on a weakening dollar. On the spot market, the precious metal was changing hands at $1,520.16 per ounce, up 0.33 percent.

--With inputs from agencies

Updated Date:

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