Indian stock markets are trading lower on Monday as the market participants are expected to largely look up to global trends for direction and digest the Cabinet reshuffle announced yesterday.
Indian stock market opened higher on Monday following the gains in the Asian stocks in the early morning trade. BSE Sensex gained 40 points to open at 31,932.2 points while NSE Nifty rose nearly 10 points to open at 9,984.15 points. This week Indian equities weigh in on August services sector data and the market participants are expected to largely look up to global trends for direction and digest the Cabinet reshuffle announced yesterday. Within minutes of trading both the key indices pared off the morning gains and fell into negative territory.
Shares of Coal India (up 2.01%), Reliance Industries (up 0.95%), Tata Motors (up 1.06%), Maruti Suzuki (up 0.54%), Cipla (up 0.62%) were the top gainers on the 30-share barometer Sensex. The broader Nifty 50 was trading down 0.11% at 9,962.95 points while the benchmark Sensex was trading 0.16% lower at 31,842.06 points.
The sell-off in the shares of heavyweights companies such as HDFC, HDFC Bank, Infosys, Kotak Mahindra Bank, L&T and Adani Ports contributed the most to the decline of benchmark Sensex. Collectively these 6 stocks erased off about 70 points in the index while shares of Reliance Industries, Tata Motors, Maruti Suzuki and Coal India helped to trim the losses.
The rupee firmed up by 7 paise to 63.95 against the US dollar in early trade at the Interbank Forex market today on selling of the American currency by exporters and banks. Besides, the weakness in the dollar against other currencies overseas on renewed geopolitical tensions after North Korea’s latest nuclear test yesterday and below expectations US jobs data for August gave the rupee strength.
Wall Street gained on Friday as a tepid US jobs report kept expectations muted for another interest rate hike this year, while investors kicked off a typically dour month for stocks on a positive note. The Dow Jones Industrial Average rose 0.18% to 21,988.11 points, the S&P 500 gained 0.2% to 2,476.53 points and the Nasdaq Composite added 0.1% to 6,435.33 points.