The BSE Sensex turned negative after opening 59 points higher in the early trading session on Wednesday on sustained capital outflows amid weak global cues following rising concerns of a global trade war.
The 30-share index was trading lower by 54.01 points, or 0.15%, at 35,324.59. The gauge had gained 114.19 points in the previous session.
Investor sentiment turned weak after most Asian stocks declined as trade jitters continued to simmer ahead of the July 6 deadline when U.S. tariffs are due to take effect. The deadline is set to see the imposition of 25% tariff on $34 billion worth of Chinese goods. China has also announced that it will retaliate against those measures, brokers said.
Vedanta, ONGC, Tata Motors, Adani Ports, SBI, Yes Bank, Tata Steel, TCS, Bharti Airtel, Hero MotoCorp, Infosys, Asian Paints, ITC, L&T, ICICI Bank, Wipro and Coal India were among the top index losers, shedding up to 1.91%.
On the other hand, Power Grid, Sun Pharma, HDFC Ltd, RIL, HUL and HDFC Bank, rose up to 1.11%.
The NSE Nifty too edged lower by 18.65 points, or 0.17%, to 10,681.25.
Sectoral indices, led by metals, realty, teck, PSU, IT, oil & gas, infrastructure, auto, capital goods and bankex stocks, fell by up to 1.20%.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net ₹1,043.31 crore, while domestic institutional investors (DIIs) bought shares worth a net ₹278.84 crore yesterday, as per provisional data.
In the Asian region, Japan’s Nikkei fell 0.48% and Hong Kong’s Hang Seng plunged 1.13% in early trade. China’s Shanghai Composite index, too, shed 0.68%.
The Dow Jones Industrial Average ended 0.54% lower in on Tuesday’s trade.