Mumbai: Indian equities were trading weak on Tuesday dragged down by metal stocks after US President Donald Trump slapped tariffs on steel and aluminum imports from Brazil and Argentina. Sentiment was also hit following reports US-China trade talks could face further obstacles after US backed pro-democracy protests in Hong Kong.
At 11.52 am, the benchmark Sensex was 0.5% lower at 40619.37 points , while Nifty was down 0.5% at 11983.10.
BSE Metal Index fell 2.3% with Tata Steel, Steel Authority of India, JSW Steel Ltd, Vedanta Ltd, Hindalco Industries Ltd, National Aluminum Co Ltd, and NMDC down 1-4%.
Yes Bank fell 4% after brokerages expressed concerns over the quality of potential investors in the bank announced by the private sector lender on Friday.
Investors exercised caution ahead of three-day Reserve Bank of India's bi-monthly policy meeting which starts today and the rate decision, due on Thursday. Eight of 10 economists and treasury heads surveyed by Mint expect RBI’s monetary policy committee (MPC) to cut the repo rate, at which RBI lends to banks, by 25 basis points (bps) to 4.9%, while maintaining an accommodative stance. Two expect the RBI to cut rates by 15bps.
IIFL Securities expects stock specific action today and trade to be range-bound as markets have already discounted the US sell-off as we were in correction mode in the last two days.
"Going ahead, market is cautiously awaiting RBI monetary policy especially post weak GDP data. Given the concerns on the growth side, investors would watch out for the measures that would pull up the economy from its current slump. On the global front, investors would watch out for further development on the US-China trade deal and currency and crude price movement," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private.
Biocon Ltd gained 2% after the company said it launched trastuzumab biosimilar Ogivri in the US market. Ogivri, a biosimilar to Herceptin, has been co-developed by Biocon Biologics and Mylan and will be available in 150 mg and 420 mg strengths.
IFCI gained 5% after the company said it received bids for sale of its entire stake in NSE.
Dewan Housing Finance Corp Ltd fell 5% after the insolvency court accepted bankruptcy proceedings against it.