Nifty opens below 8500, Sensex in red; ONGC, Tata Motors drag


9:35 am Market check: The Sensex is up 31.52 points or 0.1 percent at 27558.74, and the Nifty up 11.80 points or 0.1 percent at 8525.80. About 1344 shares have advanced, 384 shares declined, and 65 shares are unchanged.

The market has once again opened lower dragged by global concerns. The Nifty opened below 8500, down 14.45 points or 0.2 percent at 8499.55 and the Sensex is down 48.92 points or 0.2 percent at 27478.30.

ONGC, Tata Motors, L&T, Axis Bank and Asian Paints are losers in the Sensex. BHEL is the only green stock in the Sensex.

The Indian rupee opened flat at 66.72 per dollar Thursday against previous close 66.71. The dollar dropped, extending the longest losing streak since July, as currency traders seeking a clearer signal that Federal Reserve policy makers are determined to raise rates this year were left disappointed.

Investors are also coping with uncertainty just six days before the tightening US presidential election and two days before the October employment report.

Global markets fear a Donald Trump win in US Presidential election while the Federal Reserve kept interest rates unchanged in its last decision before the polls. The central bank maintained status quo in interest rates but signalled it could hike in December, as equities remained pressured by uncertainty over the impending US elections.

Among global markets, Asia shares eased as MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 percent in early trade, while Australia’s market lost 0.5 percent. Tokyo markets were closed for a holiday, which was likely just as well as the Nikkei would have been hard pressed by the rising yen.

Wall Street stayed weak with the S&P 500 heading towards its seventh straight session of declines, its longest such streak in about five years. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.

Crude oil prices tumbled nearly 3 percent after a record weekly build in US crude stocks added to worries of all-time highs in OPEC production that suggested little could be done to rein in a global glut. Crude inventories rose by 14.4 million barrels for the week ended October 28 – the biggest ever rise in US. crude stocks in a week, overwriting a 2012 record.

Gold prices briefly hit highest level at USD 1309 an ounce for the first time since October 4.

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