The BSE benchmark Sensex and NSE Nifty on Tuesday ended on a volatile note tracking weakness in global equities amid fresh concerns over US-China trade talks. After dropping over 100 points in early trade, the market slipped 64.20 points to end at 35,592.50 on Tuesday. Similarly, the 50-share Nifty slipped 9.35 points to 10,652.20.
On Monday, the Sensex plunged 368 points to close at 35,656.70; and the broader NSE Nifty tumbled 119 points to end at 10,661.55. In the morning session on Tuesday, PowerGrid, RIL, Infosys, HDFC Bank, L&T, Yes Bank, HUL, NTPC and Coal India were among the top losers, falling up to 1.60 per cent. While, Sun Pharma, Bajaj Finance, ICICI Bank, ITC, Tata Motors, and Bharti Airtel were the top gainers, rising up to 1.60 per cent.
On a net basis, foreign portfolio investors (FPIs) purchased shares worth a net of Rs 223.44 crore Monday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 92.32 crore, provisional data available with BSE showed.
“Market opened on a negative note due to uncertainties surrounding the global market and upcoming US Fed policy. However, towards the closing, market managed to recoup some of the losses supported by strengthening rupee and short-covering ahead of F&O expiry. Market is not completely out of the wood as volatility may extend in the coming days due to interim budget and election-led uncertainty,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.
According to analysts, global investor sentiment turned jittery after the US charged Chinese telecom giant Huawei with a series of crimes including stealing trade secrets, a move that can escalate hostilities between the world’s biggest economic powers and complicate efforts to negotiate an end to their bruising trade war.
The charges were unveiled ahead of crucial trade talks between American and Chinese officials on January 30 and 31.
During the day, the 30-share Sensex touched an intra-day high of 35,734.14 and dipped to a low of 35,375.51. It finally settled with a loss of 64.20 points, or 0.18 per cent, at 35,592.50.
The Indian rupee, meanwhile, was trading flat against US dollar at 71.09. While, Brent crude futures rose 1.05 per cent to USD 60.44 per barrel.
Elsewhere in Asia, Hong Kong’s Hang Seng fell 0.58 per cent, Shanghai Composite Index was down 0.50 per cent higher, Kospi slipped 0.28 per cent and Japan’s Nikkei dropped 0.82 per cent in early trade. On Wall Street, Dow Jones Industrial Average ended 0.84 per cent lower on Monday. The rupee, meanwhile, was trading marginally lower against US dollar at 71.15. The benchmark Brent crude futures rose 0.13 per cent to $59.89 per barrel.