Updates for morning trade
By Vivek Kumar M
Dec 16 (Reuters) - India's equity benchmarks fell in early trade on Tuesday as investors navigate persistent foreign outflows and a depreciating rupee, while a trade deal with the U.S. remains elusive.
The Nifty 50 .NSEI fell 0.35% to 25,936.1 and the BSE Sensex .BSESN lost 0.36% to 84,904.33 as of 9:23 a.m. IST. The rupee hit a fresh all-time low against the dollar, extending its recent slide.
Fifteen of the 16 major sectors traded lower. Small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 lost 0.6% and 0.4%, respectively.
The benchmark indexes have been wavering over the last two weeks, after hitting record highs on December 1, due to lack of major triggers and continued wait for a India-U.S. trade deal.
Foreign portfolio investors sold shares worth 14.68 billion rupees ($161.6 million) on Monday, marking their seventh consecutive session of selling, provisional data showed.
Investors are waiting for an update about the India-U.S. trade negotiations, with analysts saying that hopes for a deal before year end appear to be dimming.
India's trade secretary said on Monday that the two countries were close to a "framework deal", without giving any timeline. Last week, India's chief economic advisor said that a trade deal is likely only by March.
Investor sentiment globally was subdued, with MSCI's broadest index for Asia Pacific stocks outside Japan .MIAPJ0000PUS down 1.4%, weighed down by artificial intelligence-linked stocks ahead of crucial U.S. employment data. MKTS/GLOB
"This week's jobs data could be more important for equities perception of interest rate policy going forward than last week's FOMC meeting," said Vikram Kasat, head advisory at PL Capital.
Lower interest rates in the U.S. make emerging markets such as India more attractive to foreign investors.
Among stocks, Cello World CELO.NS fell 2.3% after Investec initiated coverage with a "sell" rating.
(Reporting by Vivek Kumar M; Editing by Sumana Nandy)
((VivekKumar.M@thomsonreuters.com;))
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