Indian equities fell into losses after starting flat on Wednesday with Sensex and Nifty as shares of heavyweight firms such as HDFC Bank, HDFC, IndusInd Bank, Tata Steel and RIL slipped up to 3%. The sentiments were also subdued as most of the Asian shares traded weak in the early deals as investors turned cautious on US-China trade talk. According to a Reuters report, US President Donald Trump has tempered optimism over the progress made so far in trade talks between the world’s two largest economic powers. Meanwhile, the Indian rupee tumbled as much as 25 paise against the US dollar to a new 16-month low ahead of US Federal Reserve’s minutes of last policy meeting.
The rupee fell 25 paise to a fresh 16-month low of 68.29 apiece US dollar at the interbank foreign exchange market on Wednesday. The US dollar strengthened against most global currencies as investors await hints on the pace of further US monetary tightening amid sustained capital outflows, PTI reported citing unidentified forex dealers. Earlier yesterday, the rupee added 8 paise to close at 68.04 against the US dollar.
Shares of SBI extended gains for the second consecutive day on Wednesday after India’s largest bank by asset posted the highest-ever quarterly loss of Rs 7,718 crore in the January-March period for the financial year ended 31 March 2018. The stock of SBI surged as high as 5.44% to a day’s high of Rs 268 on BSE today. The S&P BSE Sensex lost 100.25 points to hit a day’s bottom of 34,550.99 on Wednesday.
US stocks ended lower on Tuesday, weighed down by lingering uncertainty over the outcome of trade talks between the United States and China and declines in energy and industrial shares, Reuters said in a report. President Donald Trump on Tuesday said he was not pleased with recent trade talks between the United States and China and earlier said there was no deal yet with China on ZTE Corp, the report added. The Dow Jones Industrial Average fell 178.88 points or 0.72% at 24,834.41, the S&P 500 lost 8.57 points or 0.31% to 2,724.44 and the Nasdaq Composite dropped 15.58 points or 0.21% to 7,378.46.