The rupee opened 26 paise lower compared to its previous close amid continued foreign fund outflows. The Indian currency opened at 69.26, then fell to 69.32 compared to the previous close of 69.06 against the US dollar.
Traders said strengthening of the greenback vis-a-vis other currencies overseas, a weak opening in domestic equities also weighed on the local unit. The dollar index inched up 0.05 per cent to 98.41.
Net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bearish with net selling logged at Rs 1,393.71 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 2,140.26 crore on Thursday.
Equity market indices Sensex and Nifty traded broadly lower on Friday, tracking the tepid global market trend. As of 11: 30 am, S&P Sensex was trading 228 points lower at 36,790 and Nifty50 stood at 10, 909 mark, with a loss of 90 points.
Domestic market sell-off was in line with the global market amid rising tension among investors over the fresh trade battle triggered between the two largest economies, after US President said he would impose a 10% tariff on the remaining $300 billion of Chinese imports from next month
Sector-wise, only auto stocks were trading bullish, while highest fall was registered in metal stocks, declining over 2.50%, followed by over 1% decline recorded in financials, energy, realty and banking stocks.
The trade war tensions between the US and China along with unabated foreign fund outflows weighed heavily on market sentiments, traders said.
Following the recent trade war development to a new tariff threat, Asian markets were trading lower in their respective early sessions, with Nikkei and Hong Kong Index falling 2% each. Hong Kong Index fell over 2% on news that China may impose Martial Law in Hong Kong, while on the Singapore Exchange, SGX Nifty was trading down 69 pts.
On Wall Street, US Futures traded down 65 pts or 0.24% after Trump put concerns about the U.S.-China trade war fell back in the spotlight with Trump sighting 'taxing the hell out of China' in his tweet.
Meanwhile, oil prices bounced back a tad after suffering sharp falls the previous day. The global oil benchmark Brent crude futures surged by 2.61% to 62.08 per barrel, after having fallen 7.0% on Thursday, its biggest daily percentage drop to a 4-month low at $61/bbl on concerns of trade war.
Edited by Rupa Burman Roy
More on Market News
More on Market Live