Sensex, Nifty trade lower as financial stocks lead losses
Asian shares were trading mostly higher in afternoon trade on Monday.
Equity gauges Sensex and Nifty started the session with marginal gains on Monday, tracking positive Asian shares. In opening deals, BSE Sensex was trading 54.76 points or 0.14 per cent higher at 38,183.66; while Nifty was up 9.40 points or 0.84 per cent at 11,203.55.
Asian shares were trading mostly higher in afternoon trade on Monday. On Friday, the Sensex had settled 11.57 points, or 0.03 per cent, lower at 38,128.90; and the Nifty had ended 21.30 points, or 0.19 per cent, down at 11,194.15.
Despite of positive global market cues Indian market is trading lower. Nifty50 and BSE Sensex both are down by 0.50 per cent.
"In Nifty50 decline is led by the financial stocks like HDFC Bank in down by 3 per cent and ICICI Bank is down by 4.75 per cent. HDFC Bank's MD Aditya Puri has sold bank's shares worth Rs8.43 billion. ICICI Bank reported Q1 profit growth of 36.2per cent year on year basis. But additional Covid-19 related provisions of Rs55.5 billion limited the profit growth," said Vijay Valecha, chief investment officer, Century Financial.
"Among the sectoral Indices bank is down by 2.5 per cent, pharma is down by 2 per cent and FMCG is down by 0.80 per cent. For the day 10960 and 11240 could work as support and resistance for Nifty50."
On weekly basis, the Sensex gained 1,108.76 points or 2.99 per cent, while the Nifty jumped 292.45 points or 2.68 per cent. Exchange data showed that foreign institutional investors bought equities worth Rs4.09 billion on a net basis on Friday.
Growing tensions between the US and China largely led to subdued sentiment in financial markets globally in recent weeks.
Meanwhile the rupee appreciated by 14 paise to 74.69 against the US dollar to quote at Dh20.35 in early trade on Monday, tracking positive Asian peers.
After opening on a strong note, the Indian currency went on to further strengthen its position and touched 74.69 against the US dollar, up 14 paise over its previous close. It had settled at 74.83 against the greenback in the previous session on Friday.
Forex dealers said stronger Asian currencies against the US dollar this morning helped rupee bolster sentiment. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.51 per cent to 93.95.
"INR appreciated by 0.21 per cent to 74.70 today after appreciating by 0.28 per cent to 74.8550 last week against US Dollar amid US stimulus package announcement, positive global market cues and weak US Dollar against all major currencies. Indian foreign exchange reserve increased by $1.2 billion to $517.60 billion in the week of July 17. For the day 74.40 & 75.10 could work as support and resistance," added Valecha. - With inputs from PTI, email@example.com
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