Mumbai, May 8 (IANS) Global trade tensions along with disappointing quarterly results suppressed the key Indian equity indices on Wednesday.
The key indices — the S&P BSE Sensex and NSE Nifty50 — had a gap-down opening and were subsequently weighed down by the outflow of foreign funds.
Sector-wise, heavy selling pressure was witnessed in banking, automobile, oil and gas, capital goods and consumer goods stocks.
Consequently, the wider Nifty50 of the National Stock Exchange (NSE) ended the day’s trade lower by 138.45 points or 1.20 per cent at 11,359.45 points.
The barometer 30-scrip Sensitive Index (Sensex), which opened at 35,204.66 points, closed at 37,789.13 points, lower by 487.50 points or 1.27 per cent, from its previous session’s close of 38,276.63 points.
“Indian markets opened weak in line with other global markets as concerns over US-China trade deal resurfaced,” said Deepak Jasani, head of retail research at HDFC Securities.
“It was the sixth consecutive session of losses for the Nifty. It opened with a downgap and gradually kept falling. After recovering intra-day, a second round of fall began… Ultimately the Nifty closed near the day’s low,” Jasani added.
Vinod Nair, head of research at Geojit Financial Services, said: “The market continued to slide as escalation in trade war and anxiety over global growth dampened the risk sentiment. Selling was broad based while the outflow of foreign funds may impact liquidity in the market.
“The ongoing Q4 results are not surprising the investors whereas the expectation continued to be positive. Stability in oil prices and drop in bond yield are some positive triggers for the market which will provide edge over the other emerging markets.”
Provisional data from the BSE showed that FIIs sold stocks worth Rs 701.50 crore and DIIs bought stocks worth Rs 232.95 crore.
Similarly, the rupee weakened by 31 paise to settle at Rs 69.72 per US dollar from its previous close of 69.43.