The Indian market ended lower for the seventh straight session on Thursday, with Sensex and Nifty settling at 2-month lows, mirroring losses across Asia. Increased tensions ahead of crucial US-China trade talks raised fresh concerns over the global economic outlook.
Asian shares fell to six-week lows, with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping over 1 percent.
Investors remained cautious as they waited to see if Chinese Vice Premier Liu He can salvage a trade deal during two days of negotiations in Washington on Thursday and Friday.
Subdued corporate results and caution ahead of national election outcome also weighed on the indexes.
The Sensex settled 230 points lower at 37,559, while the Nifty50 lost 58 points to end at 11,302. The broader markets were also under pressure with Nifty Midcap down 0.2 percent and Nifty Smallcap indices ending 0.6 percent lower.
Shares of index heavyweight Reliance Industries fell 3.5 percent, dropping to their lowest in more than two months after brokerage Morgan Stanley cut the rating on the stock saying global oil issues, and gas glut would hurt the conglomerate’s earnings.
BPCL, Coal India, Asian Paints, and Kotak Bank were the other top losers on Nifty. Meanwhile, Zee, YES Bank, Hero Moto Corp, Bajaj Finance, and Bajaj Finserv were top gainers.
Nifty Metal fell the most, down over 1 percent, dragged by JSPL, COAL India, JSW Steel, and Hind Zind, down between 1.3-4 percent. Nifty Bank and Nifty Pharma also ended lower during the day.
Nifty Media gained the most, up 3 percent, led by Zee, which rose 8 percent, after 5 sessions of falls. Nifty PSU Bank and Nifty Realty also rose 0.4 percent each.
Yes Bank also gained 6.5 percent even after India Rating downgraded the stock's long-term ratings to 'IND AA-' with a negative outlook.
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