Sensex, Nifty Trade Flat; Coal India Drops 2%

The S&P BSE Sensex turned choppy after hitting a new life-time high of 38,989.65 on Wednesday. The benchmark BSE Sensex extended its record-setting spree for a third session on buying by domestic investors amid short-covering ahead of August futures and options (F&O) expiry and mixed Asian cues. However, the index, soon turned flat and was trading at 38,873.06, with a loss of 23.57 points or 0.06 per cent at 11:50 am. The broader Nifty50 too turned cautious and was trading at 11,727.35, 11.15 points or 0.09 per cent lower at the same time.

Major losers in the 30-share Sensex pack in the session were YES Bank (-1.89%), Coal India (-1.31%), ICICI Bank (-0.55%), HDFC Bank (-0.31%), TCS (-0.20%) and Wipro (-0.14%). Coal India (-2.04%), Tech Mahindra (-1.35%), Titan (-1.10%), IndiaBulls Housing Finance (-1.01%) and Infosys (-0.88%) were the main laggards on NSE.

"Now onwards it seems like it is a sheer challenge to the Indian market to continue the northern rally as obstacles like domestic currency depreciation, rising crude oil prices and the valuation of the Indian market may cause some profit taking", said Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital.

The Indian rupee collapsed today to a lifetime low of 70.52 by plunging 42 paise against the US dollar on strong month-end demand for the American currency amid foreign fund outflows.

Asian shares crept marginally higher today as optimism over the US-Mexico trade deal was quickly clouded by caution ahead of a looming deadline on tariffs with China. In global commodity markets, spot gold was hovering around $1,203.81 after running into profit-taking at $1,214.28, its highest level since August 10. Oil prices dithered either side of flat as falling supplies from Iran ahead of U.S. sanctions balanced rising production outside the Organization of the Petroleum Exporting Countries.

On the other hand, major gainers on Sensex pack in the morning session were Vedanta (+2.08%), Bharti Airtel (+1.04%), SBIN (+0.77%), Adani Ports (+0.74%), Sun Pharma (+0.64%) and Tata Motors (+0.58%). Vedanta (+1.95%), UPL (+1.81%), GAIL (+1.40%), ONGC (+1.29%) and Sun Pharma (+1.18%) led the pack of Nifty gainers.

Meanwhile, stock markets extended their gains to a second straight session to register new all-time closing highs on Tuesday. BSE benchmark index Sensex closed at 38,896 while the NSE Nifty settled at 11,738. (With agencies inputs)