After three consecutive sessions of rally, domestic equity indices declined in the opening deal on Tuesday on weak overnight cues from the US markets. Notably, the domestic indices declined during the majority of the sessions so far in June.
Major stock indices in the US posted their biggest declines in more than a week on Monday, said Deepak Jasani, Head of Retail Research of HDFC securities. Also, concerns of consistent fund outflows from India by foreign portfolio investors as well as rising global crude oil prices weighed on the investors’ sentiment.
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Besides the Indian indices, other major Asian shares too declined in early trade on Tuesday with investors taking their cues from a volatile overnight session in the US. At 9:33 am, Sensex was at 52,850.41 points, down 310.87 points or 0.58 per cent, whereas Nifty was at15,730.50 points, down 101.55 points or 0.64 per cent.
Among the individual stocks, Asian Paints, Titan, Adani Ports, Bajaj Auto, and Bajaj Finserv were the top five losers among the Nifty 50 companies, while ONGC, Mahindra and Mahindra, BPCL, Reliance Industries, and ITC were the top five gainers, National Stock Exchange data showed. Besides other factors, consistent weakness in the Indian currency rupee too has a negative bearing on the financial markets.
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“The sentiments have taken a hit amid deteriorating global growth prospects and as the central banks look to act aggressively in their battle against inflationary forces,” said Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking.
