Market Wrap: Bears tighten grip for fourth day; Sensex, Nifty fall over 0.45% each : Podcast: Business Today
Business Today

Market Wrap: Bears tighten grip for fourth day; Sensex, Nifty fall over 0.45% each

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July 10, 2019

Benchmark indices Sensex and Nifty closed in bearish territory on Wednesday, with each index registering loss of around 0.45% amid renewed concerns over trade tension between the United States and India. While Sensex ended today's trade with a decline of 173 points at 38,557 level, Nifty50 closed at 11,498, down by 57 points.

Overall, 36 out of 50 stocks declined on Nifty50 and 21out of 30 stocks on Sensex closed in the red. On sectoral basis, all indices ended in red by the closing session with major declines registered in Infra, Realty, Metal and Auto stocks.

While Yes Bank, Coal India, Sun Pharma, ICICI Bank and Kotak Bank were among the top gainers, Bajaj Finance, Indiabulls Housing Finance, Bajaj Finserv, Tata Steel and Bharat Petroleum were the worst performers on NSE today.

As per trade experts, U.S.-India trade tension spooked domestic market which was already witnessing a sharp selloff for the last two sessions post budget announcements.

President Donald Trump warned India again about its high tariff regime before officials meet this week to break the trade impasse in New Delhi.

"India has long had a field day putting Tariffs on American products. No longer acceptable!" Trump tweeted on Tuesday.

Earlier today, key equity indices opened with minor losses, with 30-share BSE Sensex starting 28 points lower to 38,701.99 and broader NSE Nifty50 at 11,536.15, down by 13 points.

In major stock related developments, InterGlobe Aviation shares fell as much as 19% after a co-founder of India's largest airline IndiGo alleged violation of corporate governance rules at the parent group. On the back of this, SpiceJet share price rose 9.38% to 128.25 level.

Share price of Manpasand Beverages hit lower circuit of 5% after auditor Mehra Goel and Co. Chartered Accountants resigned amid the ongoing investigation in the GST fraud case on the fruit juice manufacturer.

Shares of Tata Motors,TVS Motors ,Bharat Forge, Bajaj Auto, Hero Motocorp and Mahindra & Mahindra among others ended lower after the data released by the Society of Indian Automobile Manufacturers (SIAM) showed a slump in domestic sales generated as well as the production figures.

On the currency front, the rupee opened weak at 68.61 at the interbank forex market,  showing a decline of 16 paise against the US dollar in early trade amid unabated foreign fund outflows and rising crude oil prices. Although it gained momentum later to trade at 68.50 per dollar.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 674.26 crore Tuesday, while Domestic institutional investors (DIIs) bought Rs 710.91 crore worth of investments.

Meanwhile, brent crude futures, the global oil benchmark, climbed 0.89 per cent to USD 64.73 per barrel and extended gains to trade at 65$ per barrel later in the day. Rise in crude prices was led by US crude, after an industry group reported that US stockpiles fell for a fourth week in a row, alleviating concerns about oversupply amid global trade tensions.

Market participants, globally stayed muted in today's trade as they weighed whether U.S. Federal Reserve Chairman Jerome Powell would confirm or confound expectations for U.S. policy easing this month. Powell will testify before Congress on Wednesday and Thursday.

US market fell along European shares , while Asian stocks traded mixed, with modest gains in Hong Kong and South Korea and declines in Japan and China.