The benchmark indices opened lower on Friday (July 9). Equity benchmark Sensex tumbled over 300 points in early trade on Friday, tracking losses in index majors Reliance Industries, HDFC twins and ICICI Bank amid a weak trend in global markets.
After dropping 340 points in the opening session, the 30-share BSE index was trading 282.08 points or 0.054 per cent lower at 52,286.86 in initial deals, while the broader NSE Nifty dropped 77.75 points or 0.49 per cent to 15,650.15.
Axis Bank was the top loser in the Sensex pack, shedding over 1 percent, followed by IndusInd Bank, TCS, HDFC, ICICI Bank, Reliance Industries and Bajaj Auto.
On the other hand, Tata Steel, Bajaj Finserv, Dr Reddy’s, Sun Pharma and Titan were among the gainers.
In the previous session, Sensex ended 485.82 points or 0.92 per cent lower at 52,568.94, while Nifty dropped 151.75 points or 0.96 per cent to 15,727.90.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 554.92 crore on Thursday, as per provisional exchange data.
Domestic equities continue to look soft due to weak global cues as of now, said Binod Modi Head-Strategy at Reliance Securities.
“While visible improvement in business momentum with ease of business curbs by states started offering comfort, the recent uptick in daily caseload and increasing positive rate could be a near term risk as we saw Japan imposed fresh restrictions in Tokyo yesterday,” he stated, according to PTI.
Asian markets subdued
Asian markets followed US equities and opened lower on Friday over growing anxiety regarding spread of the highly contagious Delta variant of the coronavirus globally which could hamper the overall economic recovery.
US stocks closed lower on Thursday, as falling bond yields reflected investor concern that a resurgence of COVID cases in some countries may slow the global economic recovery. USstock benchmarks retreated, with the weaker tone across global equities attributed, at least in part, to worries that the recovery could be slowed by persistent supply bottlenecks and the spread of the delta variant of the coronavirus that causes COVID-19. The price action across markets reflected a tug of war between fears of inflation and fears of growth peaking.
The 10-year US Treasury yield was down 3.4 basis points at 1.287 percent after dipping below 1.25 percent, its lowest since February. The US Labor Department said initial jobless claims rose to 373,000 from an upwardly revised 371,000 in the seven days ended July 3. Economists had looked for claims to drop to 350,00
Both FIIs and DIIs were net sellers of Rs 555 crore and Rs 949 crore in yesterday's session. According to Mohit Nigam, Head-PMS, Hem Securities, "Traders need to be a bit cautious as India VIX surged 12 percent yesterday on expectation of higher intra-day volatility. Immediate support and resistance for Nifty 50 are 15,600 and 15,800 respectively. Overall domestic factors are positive on account of fall in pandemic cases and vaccination progress and we would advise a buy on dips strategy in the current market."
Money continued to flow into mutual funds in June 2021, though at a slower pace. The total assets under management of the mutual fund industry jumped to Rs 33.66 lakh crore as on June 30 from Rs 33.05 lakh crore as on May 31. The number of systematic investment plans (SIP) in various schemes of mutual funds went up to 4.02 crore in June 2021 compared to 3.88 crores in May 2021. The contribution from SIP also went up to Rs 9,155 crore in June 2021 from Rs 8818 crore in May. The equity funds got an inflow of Rs 5,988 crore in June 2021, down from Rs 10,082 crore in May.
Fuel prices unchanged
The price of petrol continues to remain at Thursday's level of Rs 100.56 a litre and diesel Rs 89.62 per litre in Delhi. In Mumbai, the price of petrol was held unchanged at an all-time high of Rs 106.59 per litre. Diesel price continues to be at Rs 97.18 a litre, the highest among metros.
In Chennai, petrol is priced at Rs 101.37 per litre while the price of diesel is Rs 94.15 per litre. The price of petrol in Kolkata is Rs 100.62 per litre while diesel is sold at Rs 92.65 per litre.
International oil benchmark Brent crude declined 0.04 per cent to USD 74.09 per barrel.