Sensex tanks 113 points on 3-year high trade deficit, gloomy earnings
Trade deficit widened to almost a 3-year high of USD 14 billion last month as imports surged.
Mumbai: The BSE benchmark Sensex dropped by 113 points in early session on Wednesday, weighed down by metal stocks, as trade deficit widened to an almost 3-year high.
Moreover, disappointing quarterly earnings by some blue-chip companies and weak global cues made mood gloomy.
The 30-share index was trading lower by 113 points, or 0.34 per cent, at 32,828.87. The gauge had lost 372.69 points in the previous two sessions.
All the sectoral indices led by metal, power and FMCG were trading in the red, falling by up to 2.14 per cent.
The NSE Nifty fell 30.85 points, or 0.30 per cent, to 10,155.75 in early trade. Exports entered negative terrain after over an year, contracting 1.12 per cent in October.
Trade deficit widened to almost a 3-year high of USD 14 billion last month as imports surged.
Metal stocks suffered the most following the decline in metal prices in the global market, traders said. Sun Pharma suffered the most among Sensex components by tumbling 2.54 per cent after the pharma major on Tuesday reported a big drop in consolidated net profit. Other prominent losers included Tata Steel, ONGC, NTPC, M&M and ITC Ltd.
Among other Asian markets, Hong Kong's Hang Seng shed 0.10 per cent while Japan's Nikkei was down by 0.93 per cent in early trade today. The Shanghai Composite Index too inched lower by 0.53 per cent.
The US Dow Jones Industrial Average ended 0.13 per cent lower on Tuesday.