MUMBAI, India – Global sentiments were down on Tuesday following the lower estimated world economic growth for 2019 to 1.9%, which also lowered the growth estimate for India for last year to 4.8%.
With the most bearish sentiments overseas on Tuesday, equity market indices traded lower. Sensex and Nifty recorded around 0.3% lower amid the earnings season in December.
At around 11:31 IST, the NSE Nifty index was trading lower by about 18.90 points towards 12,205. Meanwhile, the BSE Sensex pared its declines to trade lower at 86.90 points towards 41,442 after reaching the intra-day low at 41,301.63 points.
In the sectoral market, most indices went down and are now trading in the red except for PSU Banks and the media sector. Today’s top gainers were Zee Entertainment, Bharti Infratel, YES Bank, Coal India, and IndusInd Bank. Meanwhile, the top losers in the market on Tuesday include Hero MotoCorp, UPL, Kotak Mahinda Bank, Tata Steel, and HDFC Bank.
At around 10:50 am IST, Zee Entertainment recorded a 3.8% gain ahead of the quarterly results scheduled later in the session.
The lower sentiments in the global market came after the IMF reduced the estimated growth in the world economy.
On the domestic front, according to market players, the increase in the USD valuation against the Indian rupee (INR) and the low quarterly results in some of the major indices has weighed on traders. Meanwhile, traders are predicted to rise into a buying sentiment on the declining market with the hopes for higher government spending for the economic growth of the country and a satisfactory Union Budget.
On the forex front, the rupee opens weak on Tuesday as well. The currency opened lower at 71.17 points against the US dollar at the interbank forex market and continued to drop lower to hit 71.19 points. On Monday, the Indian rupee closed at 71.11 points against the US dollar.
The weak opening for the Indian currency came after local investors turned cautious amid the passive quarterly results and the less than optimistic global market cues.
Meanwhile, market participants await the scheduled announcement for third-quarter earnings later today. Among the companies releasing their Q3 figures on Tuesday are Zee Entertainment Enterprises, HDFC Asset Management Company, ICICI Prudential Life Insurance Company, PolyCab India, IndiaMART InterMESH, Jay Bharat Maruti, Manaksia Aluminum Company, Mahindra EPC Irrigation, Newgen Software Technologies, Kaycee Industries, Granules India, Havells India, Hatsun Agro Product, Sasken Technologies, Atishay Ltd, Rane (Madras), Mahindra EPC Irrigation, Gujarat Investa, United Drilling Tools, Digicontent, Sychem (India, and Tejas Networks.