Indian stock markets started in the negative territory on Tuesday as most of the Asian stocks inched lower in the morning deals tracking the massive losses on Wall Street with Dow Industrials diving 458 points in a sell-off led by tech shares.
Indian stock markets started in the negative territory on Tuesday as most of the Asian stocks inched lower in the morning deals tracking the massive losses on Wall Street with Dow Industrials diving 458 points in a sell-off led by tech shares. The sentiments of the market participants were also cautious ahead of the outcome of Reserve Bank of India’s first bi-monthly meeting due later tomorrow. BSE Sensex shed 57.94 points or 0.17% to open at 33,197.42 whereas NSE Nifty lost 24.95 or 0.24% to start the day at 10,186.85 on Tuesday.
Within minutes of trade, Indian equities pared off the early losses following a surge in shares of State Bank of India, Indian Oil Corporation, HPCL, Indiabulls Housing Finance, Yes Bank, ICICI Bank, Axis Bank, Bajaj Finance, BPCL and IndusInd Bank. Shares of State Bank of India topped the BSE Sensex rising over 2.5% to Rs 252.75.
Shares of ICICI Bank were trading little changed in positive zone on Tuesday snapping the massive fall on Monday. The stock of ICICI Bank gained 0.92% to Rs 264.3 on BSE. In a major announcement yesterday, ICICI Bank board approved the redemption of 350 unlisted preference shares of Rs 1 crore each and decided to reclassify all kinds authorised share capital into equity. This is in reference to the preference shares allotted on 21 April 1998 with a tenure of 20 years are due for redemption on 20 April 2018.
Shares of Motherson Sumi Systems jumped 4.15% to Rs 337.7 after the auto component maker signed a pact to acquire interior components and modules manufacturer Reydel Automotive Group for $201 million. Shares of Tata Steel dropped 0.9% to Rs 573.45 after the company informed NCLT that Tata Steel will pay Rs 35,200 crore to the debt-laden Bhushan Steel’s creditors and convert over Rs 27,000 crore worth of their loans into equity.
Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since Britain’s vote to leave the European Union in June 2016, Reuters said in a report. The Dow Jones Industrial Average fell 458.92 points, or 1.9 percent, to end at 23,644.19 after dipping below its 200-day moving average. The S&P 500 fell 58.99 points, or 2.23 percent, to 2,581.88 and the Nasdaq Composite dropped 193.33 points, or 2.74 percent, to 6,870.12, Reuters added.