Stock market update: Markets decline in early trade on weak global peers, foreign fund outflows

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Equity benchmark indices declined in early trade on Monday in tandem with a weak trend in global markets and foreign fund outflows.

The 30-share BSE Sensex dropped 281.74 points to 80,902.19. The NSE Nifty declined 81.45 points to 24,770.70.

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Among the 30 Sensex firms, Adani Ports, Tata Steel, NTPC, Power Grid, Mahindra & Mahindra and Tata Motors were the biggest laggards.

Hindustan Unilever, Asian Paints, Infosys and Tata Consultancy Services were among the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong were trading lower.

The US markets ended significantly lower on Friday.

"The stock markets have taken a sharp bearish turn, with sentiment shifting from optimism about cooling US inflation to concerns over a potential US economic slowdown. Friday's weaker-than-expected jobs data has reignited fears of a recession, further compounded by soft manufacturing updates," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said while speaking on the stock market update, reported PTI.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 620.95 crore on Friday, according to exchange data.

"Two factors are likely to weigh on markets: one, the outcome of the US presidential elections and two, the Fed decision on rate cut," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said while speaking on the stock market update, reported PTI.

Global oil benchmark Brent crude climbed 1.24 per cent to USD 71.94 a barrel.

The BSE benchmark had tumbled 1,017.23 points or 1.24 per cent to settle at 81,183.93 on Friday. The NSE Nifty dropped 292.95 points or 1.17 per cent to 24,852.15.

Rupee trades in narrow range against US dollar in early trade

The rupee traded in a narrow range on Monday and appreciated 1 paisa to 83.94 against the American currency, amid a muted trend in domestic equities.

Forex traders said easing crude oil prices and overall weakness in the dollar index supported the rupee, but the Reserve Bank's active intervention kept the rupee in a tight range.

At the interbank foreign exchange market, the local unit moved in a narrow range. It opened at 83.96 against the American currency and touched 83.85 in initial trade. It was later trading at 83.95 against the greenback, unchanged from its previous close.

On Friday, the rupee gained 2 paise to close at 83.95 against the US dollar.

The Indian rupee is expected to be range bound with the market awaiting to see when the Reserve Bank of India (RBI) would allow a move above 84.00.

(With inputs from PTI)