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Thursday, June 14, 2018

Sensex drops 100 pts, Nifty below 10,850; Infosys dips 2%

NEW DELHI: Benchmark indices Sensex and Nifty on Thursday opened on a poor note after the US Federal Reserve hiked interest rates for the second time this year and hinted at two more such hikes in the remainder of 2018. Concerns over widening current account deficit (CAD) at home and data showing lower-than-expected Chinese factory output growth too weighed on the sentiment. Besides, all eyes were on US President Donald Trump's meet with his top trade advisers later in the day to decide on tariffs on Chinese goods. At 9.26 am, the BSE Sensex was trading 95.84 points, or 0.27 per cent, lower at 35,642.40. Nifty50 was ruling at 10,820.90, down 35.80 points, or 0.33 per cent. IT stocks fell as rupee appreciated against the US dollar in morning trade. Wipro was the top Sensex loser with 1 per cent drop. TCS and Infosys too declined up to 0.9 per cent. SBI, Axis Bank, ICICI Bank, NTPC and Reliance Industries shed up to 0.7 per cent. On the upside, Bharti Airtel advanced 1.57 per cent to Rs 382. Dr Reddy's Labs gained 1.38 per cent to Rs 2,283.10. Sun Pharma, ONGC and HDFC Bnk added up to 0.7 per cent. Asian markets were down up to 0.7 per cent. Earlier in the morning, China reported lower than retail sales in May grew to 8.5 per cent. This is against an expectation of 9.6 per cent. Factory output growth for the country during the same month stood at 6.8 per cent. This was against an expectation of 7 per cent. Domestic imbalance in development still exits, it said.


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