Sensex drops 131.81 points, Nifty falls below 12090; Kotak Mahindra Bank, Pidilite gain

Mumbai: Indian equity indices witnessed a weak start in the opening session on Thursday (January 30) with the Sensex down 131.81 points or 0.32% at 41066.85, and the Nifty down 35.20 points or 0.29% at 12094.30. Major gainers on the indices were Kotak Mahindra Bank, Pidilite, Escorts, and SBI while IOC, BPCL, TCS and Tech Mahindra included among major losers.

The Indian rupee declined in the early trade on Thursday, as it opened lower by 16 paise at 71.41 per dollar versus Wednesday's close 71.25.

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On Wednesday, equity benchmark indices ended higher due to buying seen in select metal, FMCG and auto stocks while investors hoped for market-friendly proposals in the upcoming Union Budget for 2020-21. The BSE S&P Sensex closed 232 points higher at 41,199 while the Nifty 50 ticked up by 74 points at 12,130. 

Except for Nifty pharma, all sectoral indices at the National Stock Exchange were in the green with Nifty FMCG lifting up by 1.3 per cent, metal by 0.9 per cent and auto by 0.8 per cent.

Meanwhile, Asian stocks slipped while gold and bonds were in demand on Thursday as worries about the spread of a new virus from China sent investors heading for safety. The Federal Reserve kept interest rates unchanged on Wednesday, as expected, although bank Chairman Jerome Powell`s comments about a low inflation outlook added to US government bonds` appeal.

MSCI`s broadest index of Asia-Pacific shares outside Japan fell 0.8% to an almost seven-week low. Japan`s Nikkei fell 1%. Hong Kong`s Hang Seng extended Wednesday`s drop and Taiwan`s benchmark index opened 1.5% lower in its first session since the Lunar New Year break.

Yields on benchmark 10-year U.S. Treasuries, which fall when prices rise, tumbled nearly 9 basis points overnight to 1.5790%, and drifted lower to 1.5750% in Asian trade, not far above a three-month low of 1.5700% hit on Tuesday.

Overnight, Wall Street turned from positive to flat after the Fed held rates steady. The Dow Jones Industrial Average and Nasdaq Composite inched about 0.05% higher, while the S&P 500 closed 0.1% lower. US stock futures traded flat amid a slew of mixed company results after hours.

Facebook Inc posted a blowout in costs and slowing revenue growth, while Microsoft Corp and Tesla Inc respectively posted profit growth and production forecasts above expectations.

Seoul-listed Samsung, the world`s biggest memory chip maker and a bellwether of global tech demand, said its December quarter profit fell by a third, as expected, but forecast a turnaround in chip prices this quarter.

(With Agency Inputs)