Sensex drops 61 points on negative global cues, weak rupee

Fag-end buying helped trimming losses and the index closed at 34,950.92 with a fall of 60.73 points, or 0.17%.

The benchmark BSE Sensex dropped 61 points and settled below the 35,000 mark on Monday, tracking weak Asian stocks amid uncertainty around the China-U.S. trade war and fall in rupee.

The Sensex fell below the 35,000-level to touch a low of 34,811.60 due to heavy selling pressure in view of foreign capital outflows and weak global cues.

However, fag-end buying helped trimming losses and the index closed at 34,950.92 with a fall of 60.73 points, or 0.17%.

The gauge had rallied almost 580 points on Friday.

The broader NSE Nifty, after slipping below the 10,500-mark to hit a low of 10,477, finally concluded 29 points, or 0.27%, down at 10,524.

Market was volatile in a narrow range due to weak global cues and selling pressure in pharma, FMCG and auto, analysts said.

“Rupee weakened on account of crunch in domestic liquidity while gradual decline in yield may ease the concern. Investors’ were bit conservative in the holiday shortened week due to uncertainty regarding U.S.-china trade deal and Fed policy,” they added.

The rupee depreciated 67 paise, to 73.12 (intra-day) against the dollar too had a negative influence.

In the Sensex pack, IndusInd Bank was the biggest loser, plunging by 3.29%, followed by NTPC 2.72%.

Other laggards included PowerGrid falling 2.18%, ONGC 1.59%, Hero MotoCorp 1.54%, HDFC 1.46%, Vedanta 1.44%, Adani Ports 1.35%, ICICI Bank 1.27%, TCS 1.04%, ITC 0.97%, M&M 0.89%, L&T 0.81%, Bharti Airtel 0.68%, Kotak Bank 0.34%, Asian Paints 0.32% and Tata Motors 0.18%.

In contrast, SBI emerged as the top gainer by surging 3.45% after the country’s largest lender on Monday reported a net profit of ₹576.46 crore in the second quarter ended September 30.

Axis Bank too rose 2.35% after the private-lender on Friday reported a 83% jump in its net profit at ₹790 crore for the quarter ending September on the back of healthily growth in core income and a decline in provisions for bad loans.

Wipro, RIL, Bajaj Auto, Coal India, Tata Steel, Yes Bank, Maruti Suzuki, HDFC Bank, HUL, SunPharma and Infosys too ended higher by up to 1.52%.

Among sectoral indices, the BSE power index emerged as the worst performer by falling 1.59%, followed by oil & gas index shedding 1.42%, healthcare 0.64%, infrastructure 0.60%, consumer durables 0.51%, capital goods 0.40%, auto 0.33%, PSU 0.31%, FMCG 0.31% and teck 0.08%.

While realty index rose by 1.55%, metal 0.15% and bankex 0.12%.

Selling pressure also dragged down the mid-cap and small-cap indices by 0.68% and 0.42%, respectively.

Elsewhere in Asia, Hong Kong’s Hang Seng fell 2.08%, while Japan’s Nikkei was down by 1.55%. South Korea’s KOSPI index fell 0.91%, while Taiwan index down 0.17%. Shanghai Composite Index shed 0.41% even as President Xi Jinping promised to lower import tariffs and continue to broaden markets access. Taiwan lost 0.89%.

In the eurozone, Paris CAC 40 fell 0.12%, Frankfurt’s DAX lost 0l.19%, while London’s FTSE shed 0.10% in their early sessions.

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