Sensex Opens Lower; Metal & Realty Stocks Drag

Asian stock markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.1% while the Hang Seng is down 0.5%. The Shanghai Composite is trading down by 0.8%. Wall Street fell in a day of heavy trading on Wednesday with the S&P 500 posting its biggest percentage drop since late June as investors turned risk-averse on disappointing earnings and escalating global tariff worries.

Back home, India share markets have opened the day on a lower note. The BSE Sensex is trading down by 136 points while the NSE Nifty is trading down by 29 points. The BSE Mid Cap index opened down by 0.2% while BSE Small Cap index opened the day up by 0.1%.

The rupee is currently trading at 69.77 to the US$.

Sectoral indices have opened the day on a mixed note with healthcare stocks and IT stocks witnessing maximum buying interest. While metal stocks and realty stocks have opened the day in red.

In the news from the economy. India’s trade deficit in July widened to the most in more than five years, worsening the outlook for the rupee that hit a record low on Tuesday.

According to data released by India’s commerce ministry, the gap between exports and imports reached US$18 billion in July, fanned by a higher oil import bill.

The trade shortfall puts pressure on the current-account deficit, a key vulnerability for the economy and one of the reasons why the rupee has been among the worst-hit in Asia amid an emerging-market rout this year.

The rupee dropped to as low as 70.08 per dollar on Tuesday as a collapse in Turkey’s lira hit investor sentiment, taking the slump in India’s currency down to 8.6% this year.

While a weaker rupee is positive for exports, it poses an inflation risk for a nation that imports more than 80% of its crude-oil needs. Every rupee change in the exchange rate against the US dollar impacts India’s crude oil import bill by Rs 108.8 billion (US$1.58 billion), according to the oil ministry.