Equity benchmark BSE Sensex declined over 150 points in early trade on July 31 as investors looked cautious amid dampened hopes for a breakthrough in the U.S.-China trade talks.
Most investors preferred to stay on the sidelines ahead of the U.S. Federal Reserve’s meeting, traders said.
The 30-share index was trading 155.94 points or 0.42% lower at 37,241.30; and the broader Nifty also fell 43.25 points or 0.39% to 11,042.15.
In the previous session, the 30-share index cracked fell 289.13 points or 0.77% to end at 37,397.24. The broader NSE Nifty sank 103.80 points or 0.93% to 11,085.40.
The simmering trade tensions between the U.S. and China and unabated foreign fund outflows mainly weighed on the market sentiments, traders said.
Investors also turned pessimistic about the ongoing high-level talks between the U.S. and China aimed at resolving their trade disputes after U.S. President Donald Trump accused China of going back on commitments.
The U.S. Fed in its meeting on July 31 is expected to cut its benchmark interest rate for the first time in a decade.
In the domestic markets, foreign investors sold equities worth ₹644.59 crore on a net basis on July 30, as per provisional data with stock exchanges.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading lower in their respective early sessions.
US stocks ended on a negative note on July 29.
Meanwhile, the Rupee depreciated 5 paise to 68.90 against the U.S. Dollar in morning trade.
The global oil benchmark Brent crude futures were trading rose 0.68% to 65.16 per barrel.
