Sensex, Nifty Turn Flat On Weak Global Cues
Benchmark equity indices opened on a positive note on Monday on fresh buying in IT, tech and capital goods counters following robust GDP (Gross Domestic Product) growth rate for the April-June quarter of fiscal and recovery in rupee. However, the domestic indices could not sustain early gains and turned negative amid tepid global cues. At 2:17 pm, the S&P BSE Sensex skidded 59.02 points or 0.15 per cent to trade at 38,586.05. The broader Nifty50 tripped 25.45 points or 0.21 per cent to trade at 11,656.05.
Main losers on Sensex pack in the morning session were Reliance (-0.34%), Maruti (-0.52%), ONGC (-0.58%), Axis Bank (-0.64%), Hindustan Unilever (-0.88%) and ICICI Bank (-1.30%). Main laggards on Nifty pack were Ultracemco (+0.95%), Maruti (+0.65%), ICICI Bank (+0.38%), HeroMotoCorp (+0.25%) and Axis Bank (+0.11%).
Asian stocks dropped for the third consecutive session on Monday, hit by worries over further escalation of the U.S-China trade war and unstable emerging market currencies. Oil prices also dipped today on rising supply from OPEC and the United States, although expectations of falling Iranian output once US sanctions take effect in November provided some support.
Globally, major economic US data due this week, such as a manufacturing survey on Tuesday and employment report on Friday, is also expected to show solid conditions.
On the other hand, major gainers in the 30-share Sensex pack in the session were Wipro (+6.73%), Tata Motors (+2.04%), Power Grid (+1.69%), Coal India (+1.15%), Sun Pharma (+0.98%) and Bajaj Auto (+0.78%). Wipro (+6.52%), Lupin (+2.16%), Tata Motors (+1.93%), Sun Pharma (+1.78%) and Dr Reddy's (+1.70%) led the pack of Nifty gainers.
GDP data released after market hours on Friday showed that India's economy grew 8.2 per cent in the April-June period. That marked the highest level of economic growth recorded since the January-March period in 2016, and cemented India's position as the fastest growing major economy ahead of China's 6.7 per cent.
Heavy buying was seen in IT, tech, capital goods, consumer durables, healthcare, power, auto, metal and PSU indices on BSE, rising up to 0.91 per cent in early trade today. Wipro rose over 8 per cent on BSE after the IT services major on Sunday said that it had won a $1.5 billion (Rs. 10,500 crore) 10-year deal from the US-based technology firm, Alight Solutions LLC.
The Indian rupee also recovered from all-time low of 71 and rose by 23 paise to 70.77 against the US dollar in early trade today.
Meanwhile, the stock markets ended Friday's session on a mixed note. The S&P BSE Sensex dropped 45.03 points to close at 38,645.07. The broader Nifty50 finished marginally higher at 11,680.50. (With agencies inputs)
