Markets have opened lower tracking weakness among global markets as crude prices continue to fall further.
By 9:25, the Sensex was lower by 168 points at 27,151 mark and the Nifty slipped by 44 points at 8,176 levels.
On the macro- economic front, at $ 16.86 billion, India’s trade deficit widened to 18-month high driven by over six-fold jump in gold imports. In November last year, trade deficit was $ 9.57 billion.
Further, the Wholesale Price Index (WPI)-based inflation fell to zero in November, compared with 1.77% the previous month, primarily on account of a sharp fall in global commodity prices.
Meanwhile, foreign institutional investors were net sellers in Indian equities worth Rs 455.72 crore on Monday, as per provisional stock exchange data.
On the global front, US stocks were down slightly in volatile trading on Monday afternoon as investors assessed the impact of another big drop in oil prices.
US crude fell 3.3% to settle at $ 55.91, hitting fresh 5-1/2 year lows. Both US crude and Brent have fallen nearly 50% from highs in June.
Investors are now awaiting the US Federal Reserve’s final meeting of 2014 on Tuesday and Wednesday, with a statement and forecasts expected on Wednesday
Sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the rouble jumped against the dollar after Russia sharply increased its benchmark interest rate in a bid to halt a collapse in its currency.
Activity in China’s factory sector shrank in December for the first time in seven months as new orders declined, adding to a spate of data showing more fatigue in the world’s second-largest economy and heightening expectations that more stimulus will be needed to avert a sharper economic slowdown.
Back home, BSE FMCG index has slumped over 1%. Apart from the IT sector, all the major BSE sectoral indices are trading in negative zone.
The notable losers from the Sensex are ONGC, ITC, Sesa Sterlite, Hindalco, Bharti Airtel and Dr Reddy’s Labs, all slipping between 1-2%.
On the gaining side, IT majors like Infosys and TCS have surged nearly 1%. Rupee depreciation has helped IT stocks.
Among broader markets, BSE Midcap and Smallcap indices have slipped by over 0.3%.
The market breadth in BSE remains weak with 774 shares declining and 425 shares advancing.