Markets continue to remain weak tracking bearish global trends

Equity indices started trading on a soft note, falling for a third straight day on Friday amid an overall bearish trend in global markets.

The 30-stock BSE Sensex fell 319.3 points to 58,800.42 in initial trade. The NSE Nifty fell 90.8 points to 17,539.

Among Sensex’s 30 stocks, the biggest laggards in early trade were Power Grid, IndusInd Bank, HDFC, Mahindra & Mahindra and Axis Bank.

However, Tata Steel, Hindustan Unilever, Sun Pharma, Infosys, HCL Technologies and Dr. Reddy’s the winners.

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong traded lower.

US markets closed in negative territory on Thursday.

Meanwhile, international oil benchmark Brent crude fell 0.50 percent to $90.02 a barrel.

Foreign institutional investors (FIIs) sold shares worth Rs 2,509.55 crore net on Thursday, according to data available to the BSE.

“Global risk aversion is gaining strength, helped by the steadily rising dollar. The dollar is strengthening against all currencies and this will affect capital flows to emerging markets including India. The resumption of FPI buying since July has supported the rally in India.

“Now this is in jeopardy as FPIs became sellers 5 of the last 7 days,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

The short-term market outlook is bearish, Vijayakumar added.

The 30-stock BSE benchmark was down 337.06 points, or 0.57 percent, to 59,119.72 on Thursday. The Nifty fell 88.55 points, or 0.50 percent, to end at 17,629.80.

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