Morning Bell: Sensex slips over 150 points amid trade war fears

Mumbai, PTI | Updated : 31 July 2019, 10:11 AM
Most investors preferred to stay on the sidelines ahead of the US Federal Reserve’s meeting, traders said
Most investors preferred to stay on the sidelines ahead of the US Federal Reserve’s meeting, traders said

Equity benchmark BSE Sensex declined over 150 points in early trade on Wednesday as investors looked cautious amid dampened hopes for a breakthrough in the US-China trade talks. Most investors preferred to stay on the sidelines ahead of the US Federal Reserve’s meeting, traders said. The 30-share index was trading 155.94 points or 0.42 per cent lower at 37,241.30; and the broader Nifty also fell 43.25 points or 0.39 per cent to 11,042.15.

In the previous session, the 30-share index cracked fell 289.13 points or 0.77 per cent to end at 37,397.24. The broader NSE Nifty sank 103.80 points or 0.93 per cent to 11,085.40.

The simmering trade tensions between the US and China and unabated foreign fund outflows mainly weighed on the market sentiments, traders said.

Investors also turned pessimistic about the ongoing high-level talks between the US and China aimed at resolving their trade disputes after US President Donald Trump accused China of going back on commitments.

The US Fed in its meeting on Wednesday is expected to cut its benchmark interest rate for the first time in a decade.

In the domestic markets, foreign investors sold equities worth Rs 644.59 crore on a net basis on Tuesday, as per provisional data with stock exchanges.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading lower in their respective early sessions.

US stocks ended on a negative note on Tuesday.

Meanwhile, the rupee depreciated 5 paise to 68.90 against the US dollar in morning trade. The global oil benchmark Brent crude futures were trading rose 0.68 per cent to 65.16 per barrel.

First Published: Wednesday, July 31, 2019 10:11 AM

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