Sensex, Nifty Pare Some Losses After SBI Gains; Auto Stocks Tumble
Auto stocks were the biggest losers as five popular passenger vehicle car models in India failed crash tests.
Domestic equity markets suffered sharp cuts in morning trade, tracking losses in Asian markets. The markets recovered some ground but still traded in the red. The Bombay Stock Exchange’s Sensex was down just over 150 points while the Nifty inched closer towards 7,850.
Banking stocks pared early losses, thanks to SBI which rose about a percent.
The BSE Midcap and BSE Small Cap indices too traded in the red.
Maruti Suzuki lost nearly 3 percent as Suzuki crashed 15 percent in Tokyo market after the vehicle safety group Global NCAP’s report on Tuesday said that as many as five popular passenger vehicle car models in India, including Maruti Celerio failed crash tests with ‘zero star’ rating.
HDFC Bank, Infosys, ICICI Bank, ITC, Tata Motors, Asian Paints, M&M and Axis Bank were down around 1 percent while ONGC and SBI outperformed.
Rupee Opens Weak
The rupee depreciated by 8 paise to trade at 66.95 against the US dollar in early trade, due to sustained demand for the American unit from importers and banks amid a lower opening in the domestic equity market. This was the fifth consecutive day of fall.
Forex dealers said apart from increased demand for the US currency from importers, foreign fund outflows and rising global crude oil prices amid dollar’s gains against other currencies overseas put pressure on the rupee.
Asian Markets Lower
Asian shares weakened in the wake of accelerating US inflation and comments from Federal Reserve officials that rekindled prospects of an interest rate rise as early as June.
But Japanese shares erased losses after the world’s third-largest economy posted surprisingly strong annualised 1.7 percent growth during the January-March quarter.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.8 percent.
Japan’s Nikkei climbed 0.6 percent as the yen gave up gains seen immediately following the GDP data to fall 0.2 percent to 109.33 per dollar.
China’s CSI 300 slipped 0.9 percent and the Shanghai Composite index lost 1.2 percent. Hong Kong’s Hang Seng also slid 1.2 percent.
(With agency inputs)
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