The benchmark Sensex of the Bombay Stock Exchange (BSE) drifted lower by over 125 points in early trade today amid unabated foreign fund outflows and surging global crude oil prices.
Brokers said sentiment remained weak largely on sustained capital outflows by foreign funds and rising global crude oil prices, which went past the USD 80 per barrel mark.
Investors also kept an eye on political developments in Karnataka.
The 30-share Sensex fell by 125.10 points (-0.35 percent) to 35024.02 in early trade. Earlier, the gauge had lost 407.59 points in the previous three sessions.
Similarly, the broader NSE Nifty declined by 34.35 points (-0.32 percent) to 10648.35.
Sectoral indices led by IT, Teck, capital goods, oil and gas, banking and PSU were trading in the red.
Major laggards were Wipro, HDFC Bank, L&T, Tata Motors, Adani Ports, Bharti Airtel, Asian Paints, Maruti Suzuki, ICICI Bank, Reliance Industries and ITC Ltd falling by up to 1.28 percent.
Meanwhile, on a net basis, Domestic Institutional Investors (DIIs) bought shares worth Rs 428.92 crore while Foreign Portfolio Investors (FPIs) sold shares to the tune of Rs 830.94 crore on Thursday, provisional data showed.
The depreciating rupee also affected momentum. The currency weakened by 17 paise to 67.87 against the US dollar on fresh demand for the greenback from importers and banks. The rupee on Thursday had managed to hold its ground against the US currency, gaining by 10 paise to end at 67.70 per dollar.
Trends at other Asian markets, however, was better as investors kept a cautious watch on developments in US-China trade negotiations.
Hong Kong’s Hang Seng advanced 0.22 percent while Japan’s Nikkei was up 0.25 percent in early trade. China’s Shanghai Composite Index too gained 0.46 percent.
The US Dow Jones Industrial Average, however, ended 0.22 percent down in Thursday’s trade.