Sensex, Nifty turn cautious despite strong global cues

Mumbai: Domestic equity benchmark BSE Sensex dropped over 150 points on Thursday, dragged by losses IT stocks, despite strong global cues.

The 30-share index, however, pared some losses and was trading 34.59 points, or 0.09 per cent, lower at 39,078.15 at 0930 hours. Similarly, the broader NSE Nifty was quoting 23.45 points, or 0.20 per cent, down at 11,668.

In the previous session Wednesday, the BSE gauge settled 66.40 points, or 0.17 per cent, higher at 39,112.74, while the Nifty closed almost flat at 11,691.45.

Top losers in the Sensex pack included Yes Bank, IndusInd Bank, TCS, Maruti, Infosys, Asian Paints, Tata Steel, Tata Motors, Axis Bank and HCL Tech, shedding up to 1.43 per cent. On the other hand, Bharti Airtel, Kotak Bank, Coal India, RIL, L&T, PowerGrid and HDFC gained up to 1.10 per cent.

According to experts, investors were cautious despite strong cues from global markets, amid concerns over weakening economic data, lack of liquidity and deficit in monsoon.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading significantly higher in their respective early sessions after the US Fed policy outcome.

The US central bank on Wednesday left rates unchanged, opening the door to an interest rate cut soon, saying uncertainties about the economic outlook are on the rise and vowing to act to keep the economy growing. Bourses on Wall Street too ended in the green last night.

Meanwhile, on a net basis, foreign institutional investors sold equity worth Rs 97.05 crore, and domestic institutional investors offloaded shares to the tune of Rs 104.91 crore, provisional data available with stock exchanges showed on Wednesday.

On the currency front, the Indian rupee appreciated 10 paise to 69.58 against the US dollar. The global oil benchmark Brent crude futures were trading 1.29 per cent higher at 62.62 per barrel.