Stock markets: Equity benchmark indices fell in early trade on Thursday in line with weak trends in global markets amid the lack of any breakthrough in the US debt ceiling talks. However, later both indices Sensex and Nifty turned volatile and were oscillating between highs and lows.
The 30-share BSE Sensex fell 75.1 points to 61,698. 68 in early trade after beginning the day on a weak note. The NSE Nifty dipped 31.05 points to 18,254.35 in the initial trade. But later, the Sensex quoted 25.46 points lower at 61,748.32 and the Nifty traded with a decline of 16.25 points to 18,270.05.
In sectoral indices, energy, IT and financial services were trading in the negative territory on Thursday morning. Telecommunication and Auto indices are trading in the positive territory in the morning.
From the Sensex pack, Tata Motors, State Bank of India, Mahindra & Mahindra, HCL Technologies, Wipro, IndusInd Bank, HDFC, Infosys, Tata Steel, Axis Bank, Tata Consultancy Services and Reliance Industries were the major laggards.
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ITC, Nestle, Kotak Mahindra Bank, Bharti Airtel, Power Grid and Larsen & Toubro were among the gainers. In Asian markets, Seoul, Shanghai and Hong Kong quoted lower, while Tokyo traded in the green.
How Asian and European markets fared?
In the Asian markets, Hong Kong's Hang Seng lost 391 points, Japan's Nikkei gained 165 points, China's Shanghai dropped 21 points and, Thailand Set and the Philippine Stock Exchange were trading in the negative territory when the domestic market opened on Thursday.
In the European market, CAC, BEL, Deutsche Borse and Amsterdam Exchange were trading in the positive territory; FTSE 100, FTSE 250 were trading in the positive territory.
The US market ended lower on Wednesday. "The uncertain stance of the Fed and ongoing talks about the US debt ceiling are casting a shadow of volatility in the markets," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.
"The important factor weighing down the markets in the near-term is the lack of a breakthrough in the US debt ceiling impasse," said K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Brent crude sees a dip
Meanwhile, global oil benchmark Brent crude dipped 0.05 per cent to USD 78.32 a barrel. Foreign Institutional Investors (FIIs) were net buyers on Wednesday as they bought equities worth Rs 1,185.84 crore, according to exchange data.
The Indian rupee (INR) opened 10 paise lower against the US dollar on Thursday as demand for a safe-haven dollar increased amid worries over the US debt ceiling. INR currency opened at 82.76 a dollar as compared to the previous close of 82.66.
(With inputs from agencies)