Domestic stock markets fell for second day in a row following no let-up in no let-up in selling by foreign investors amid profit-booking at higher levels amid mixed global cues. The 30-share Sensex settled the session lower by 63.61 points, or 0.21 per cent, at 30,301.64. While, the 50-share NSE Nifty regained the key 9,400-mark to touch a high of 9,431.90, but failed to hold on to the crucial level and settled down 25.60 points, or 0.27 per cent, to end at 9,360.55.
Speculators covering up their short positions ahead of the May derivatives contract expiry on Thursday added to the upward move. On Tuesday, Sensex closed 205.72 points up at 30,365.25, while NSE Nifty ended 52.10 points down at 9,386.15.
In the noon trade, sectoral indices like auto, Industrial, oil and Gas, information technology, FMCG, Energy, Bankex, were trading in green.
Tata Motors (up 3.51 per cent) was leading the Sensex pack followed by GAIL (up 2.51 per cent), HUL, HDFC, Adani Ports, ICICI Bank, TCS, Wipro, NTPC, Lupin, LT and ONGC.
TataMotors shares surged over 5 per cent in early trade despite the company posting fall in its earnings for the quarter ending March 31, 2017.
Among the global markets, Chinese stocks fell and the Australian dollar decline after Moody’s downgraded its sovereign credit rating on China. Shares elsewhere in Asia also slipped, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.3 per cent, despite modest gains on Wall Street overnight. Financial spreadbetter CMC Markets expected Britain’s FTSE 100 to open slightly higher, Germany’s DAX to start the day little changed, and France’s CAC 40 to edge lower.
Japan’s Nikkei stock index managed to end 0.7 per cent higher.
The Australian dollar, regarded as a proxy for China due to the country’s status as a major trading partner, was down 0.4 per cent at $0.7450 after falling as low as $0.7439 after the Moody’s announcement.
The offshore yuan slipped, but later recouped its losses. The Shanghai stock index also was off earlier lows but was still down 0.6 per cent, while the blue-chip CSI300 index shed 0.4 per cent.
Moody’s cut China’s rating by one notch to A1 from Aa3 in its first downgrade of the country in nearly 30 years, saying it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise.
The US dollar pulled away from recent 6-1/2 month lows as investors pored over President Donald Trump’s first full budget plan.The dollar index, which tracks the greenback against a basket of six major rivals, edged up 0.1 percent on the day to 97.456, pulling away from its lowest levels since November plumbed earlier this week. The dollar added 0.1 percent against the yen to 111.90 , while the euro was down 0.1 percent on the day at $1.1173.Oil prices modestly extended gains after rising in the previous session on expectations of an extension to OPEC-led supply cuts.
US crude was up 0.2 percent on the day at $51.55 per barrel, while Brent crude futures were also up 0.2 percent at $54.27. Spot gold slipped 0.2 percent to $1,248.65 an ounce.
With inputs from Reuters and PTI