Sensex, Nifty turn negative on weak global cues

Mumbai: Domestic equity benchmarks opened on a weak note Wednesday tracking negative cues from international markets after IMF cut global growth estimate to 3.3 per cent for this year amid geopolitical issues like US-China trade tiff and Brexit.

The BSE Sensex was trading 11.68 points or 0.03 per cent lower at 38,927.54. The gauge had settled 238.69 points, or 0.62 per cent, higher at 38,939.22 in its previous session.

The NSE Nifty was trading flat at 11,671.70 in early session.

Top losers in the Sensex pack include TCS, HDCF duo, Hero MotoCorp, Maruti, HCL Tech, ITC, ICICI Bank and Vedanta, down up to 1.17 per cent.

On the other hand, Coal India, ONGC, Tata Steel, Kotak Bank, HUL, RIL and M&M were the top gainers, rising up to 1.51 per cent.

According to traders, domestic market sentiment turned weak after the International Monetary Fund (IMF), in its World Economic Outlook, once again downgraded global growth to 3.3 per cent for 2019, two tenths lower than the global crisis lender forecast in January and four tenths lower than



October.

The quarterly report "projects a slowdown in growth in 2019 for 70 per cent of the world economy," IMF chief economist Gita Gopinath said in a statement.

As per IMF, while world growth is expected to pick up in the second half of this year and hit 3.6 per cent in 2020, many things will have to go right for that to happen, including a resolution of President Donald Trump's trade battle with China.

Elsewhere in Asia, benchmark equity indices in Shanghai, Tokyo and Seoul were trading in the negative terrain in early trade. Indices on Wall Street too ended in the red on Tuesday.

Meanwhile, foreign institutional investors (FIIs) purchased equity worth Rs 1,212.35 crore on Tuesday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 688.65 crore, provisional data available with stock exchanges showed.

The rupee appreciated 17 paise to 69.12 against the US dollar in early trade.

Brent crude futures, the global oil benchmark, was quoting marginally higher at USD 70.63 per barrel.