Indian equity indices trade Wednesday’s session in the red amid USD-INR depreciation. The rupee has crossed the 90 mark against the US Dollar for the first time ever. The NSE Nifty 50 fell 122 points or 0.47% to 25,910. The BSE Sensex declined 276 points or 0.33% to trade at 84,908.
The Bank Nifty opened 30 points or 0.05% higher at 59,304. Similarly, the small and mid-cap stocks were in line with benchmarks. The Nifty Midcap opened 20 points or 0.03% lower at 60,890.
“A real concern now, which has contributed to the slow drifting down of the market, is the continued depreciation of the rupee and fears of further depreciation since the RBI is not intervening to support the rupee. This concern is forcing the FIIs to sell despite the improving fundamentals of rising corporate earnings and a strong rebound in GDP growth,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
“The rupee depreciation will halt and even reverse when the India-US trade deal materialises. This is likely this month. A lot, however, will depend on the details of the tariffs to be imposed on India as part of the deal,” he added.
Vipin Kumar, Assistant Vice President of Technical Research at Globe Capital, said that, despite profit taking in past two trading sessions amid volatile Asian peers, Nifty’s chart structure is well-positioned on multiple time frames till it is trading above 25,800-25,750 zones on a closing basis.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Dr Reddy’s Lab, Wipro, Hindalco Industries, TCS, and Infosys. On the flip side, the key laggards in the Nifty 50 pack included Hindustan Unilever, HDFC Life Insurance, Shriram Finance, Maxhealthcare Institute, and Tata Motors PV.
Major movers on Wednesday
The stocks that were the major movers in the opening trade included Infosys, TCS, Reliance Industries, Zomato (Eternal), and HDFC Bank, which were the major movers in the morning trade.
