Indian markets on Thursday fell for the seventh consecutive session, its biggest losing streak since February 2019, joining the rout among peers across Asia as investors remained on the edge ahead of trade talks between US and China later this week.
At closing, the Sensex was down 0.61% at 37,558.91 points, while the NSE Nifty 50 index declined 0.51% to 301.80 points. In last seven sessions, Sensex has shed 3.8% or 1,500 points, while Nifty has declined 3.8% or 450 points.
Analysts expect volatility in the markets to continue due to the uncertainty over the outcome of Lok Sabha elections, oil price trajectory, and the lack of clarity US-China trade talks.
"Domestic market is on a consolidation mode as the pre-election rally is fading. Investors have turned cautious as domestic valuations are not so comforting given weak results leading to downgrade in earnings. This negative trend may get extended given the slowdown in institutional flows and premium valuation. On global front, escalation in trade tensions between US-China ahead of the upcoming meeting further accentuated the consolidation." said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
A Chinese delegation headed by Vice Premier Liu He is scheduled to arrive in Washington today for two days of talks with US trade officials. The White House has said it will raise tariffs on $200 billion worth of Chinese goods to 25% from 10% on Friday.
Back home, quarterly earnings of companies remain in focus for investors. Of the 19 Nifty companies that have so far announced their results, nine have either met or exceeded analyst estimates.
RIL fell for fourth session today to hit a two-month low of ₹1,255.15 on the BSE, and down 3.41% from previous close after brokerage firm Morgan Stanley downgraded the stock to equal weight with a price target of ₹1,349 a share.
"We remain cautious on the Indian markets and expect it to remain volatile in the near term on back of on-going Q4FY19 earnings season. Investors’ focus would be on domestic macro data (IIP) which is scheduled tomorrow. Globally, progress of trade talks between US and China, behavior of crude oil prices and fluctuation in currency will be on investor’s radar. Given uncertain market conditions, we advise traders & investors to be selective in stock picking" said Jayant Manglik, President - Retail Distribution, Religare Broking Ltd .
(Bloomberg contributed this story)