Opening Bell: Sensex, Nifty trade cautious on weak global cues; RCom, Lakshmi Vilas, Dilip Buildcon stocks bleed
The BSE Sensex lost 66 points to 38,873 while the 50-stock Nifty went down 19 points to 11,653. Nifty Bank lost 45 points but sustained above psychological 30,000 levels.
On account of weak global sentiments, as new trade standoff weighs on global bourses, the Indian indices dipped after gaining some momentum yesterday evening. The BSE Sensex lost 66 points to 38,873 while the 50-stock Nifty went down 19 points to 11,653. Reliance Communications, Lakshmi Vilas Bank, Jai Corp and Dilip Buildcon stocks were among the top losing stocks in early morning trade.
Giving her views on the current market sentiments SEBI registered technical equity analyst Simi Bhaumik said, "The market is overall bullish. Currently, it is trading in the range of 11,600 to 11,750. Investors are advised to adopt buy on dips strategy as 150-200 points corrrection at Sensex should not be a matter panic but an opportunity to enter for bulls."
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Telecom stocks bleed maximum. The BSE Telecom went off above half a per cent in early morning trade. Telecom major GTL Infrastructure crashed near 4.5 per cent, shares of Reliance Communications or RCom dipped around 2.36 per cent, ITI counter went down 1.4 per cent, Tejas Networks was down above 2 per cent, Tata Teleservices (Maharashtra) scrip went down near 2 per cent while Sterlite Technologies stocks were down more than 1.5 per cent.
However, buying pressure in realty stocks tried to pare the early morning losses at Dalal Street. Realty major Indiabulls Real Estate surge 3.3 per cent, shares of Phoenix Mills was up 2.35 per cent, Oberoi Realty stocks went up around 1.4 per cent while Godrej Properties scrip went up near 1.6 per cent. DLF stocks went up arpound 0.7 per cent.
Asian shares slipped from eight-month highs on Wednesday as the International Monetary Fund lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.3 percent, a day after it hit its highest since August 1. The Shanghai Composite Index fell 0.4 per cent and Japan's Nikkei lost 0.6 per cent. South Korean Kospi gained near 0.15 per cent. Hang Seng went down near 0.28 per cent.
On Wall Street, the S&P 500 gave up 0.61 percent and the Nasdaq Composite declined 0.56 percent on Tuesday.
MSCI`s broadest gauge of the world`s stock markets was down slightly from Tuesday`s six-month peak but it was still up roughly 19 percent from a near two-year trough marked in December.
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