Sensex drops 50 points, Nifty tests 11,100 on weak global cues

Source: economictimes.indiatimes.com

NEW DELHI: Benchmark equity indices BSE Sensex and NSE Nifty opened on a cautious note on Wednesday tracking weak cues from US stocks in overnight trade.

Statement from Moody’s Investors Service’s too impacted investor sentiment on D-Street. Moody’s said the economic measures announced by Finance Minister Nirmala Sitharaman are unlikely to provide some form of confidence or improve business and consumer sentiment. 

Moody’s, which lowered India’s gross domestic product (GDP) forecast to 6.4 per cent for FY20, said there is significant uncertainty in terms of the growth prospects both because of domestic as well as external factors. 

he 30-pack Sensex opened 14.50 points down at 37,641.84 but extended decline to over 50 points. The 50-share Nifty index opened 4.05 points down at 11,101.30. 

According to Reliance Securities, Nifty index finished on an indecisive note on Tuesday. However, the near-term metrics are in buy mode. This may lead to a rise towards 11,500-11640 on a near-term basis. The immediate support zone falls around 11070-1130-10970, while it may face resistance around 11,200-11,250-11,360. 

As many as 18 stocks in the Sensex pack were trading in the green with Tata Motors gaining the most with 1.80 per cent. It was followed by Power Grid (up 1.57 per cent), Bajaj AutoNSE -0.32 % (up 1.21 per cent), Tech MahindraNSE 0.14 % (up 1.12 per cent), HCL Tech (up 0.99 per cent) and Axis BankNSE -2.51 % (up 0.86 per cent). 

On the other hand, Tata Steel, Maruti Suzuki, HUL, IndusInd BankNSE -1.12 % and Kotak Mahindra BankNSE -2.21 % were down between 0.50 per cent and 1.20 per cent. 

Sectorwise, Metal and Bankex were down 0.72 per cent and 0.34 per cent in early trade on BSE, while Healthcare and IT index were up 0.78 per cent and 0.55 per cent, respectively. 

Wall Street ended in the red on Tuesday due to selling in financial stocks as a deepening of the treasury yield curve inversion raised US recession worries and uncertainty over any progress in trade negotiations between the United States and China took a toll. Dow Jones Industrial Average index settled at 25777.90, down 0.47 per cent against the previous close.