Markets skid as weak earnings weigh

Mumbai: Snapping its three-day rising streak, equity benchmark BSE Sensex slumped 318 points on Thursday as sluggish corporate earnings muted expectations of a swift pick-up in economic recovery.

Lacklustre global markets and a depreciating rupee further sapped investor appetite, traders said.

The 30-share Sensex, which opened on the back foot, remained subdued throughout the session and finally closed at 38,897.46, down by 318.18 points or 0.81 per cent.

Similarly, the broader NSE Nifty cracked below the 11,600 mark, ending 90.60 points or 0.78 per cent lower at 11,596.90.

"Indian equities sold off on disappointing earnings and concerns over the US-China trade war. Notably, South Korea and Indonesia cut rates and more rate cuts are likely coming in India and emerging markets.

However, foreign investors have been heavily investing in Indian debt markets as the yields remain at a steep premium to those offered in developed markets," said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

All sectoral indices ended in the red, with BSE auto, metal, energy, oil and gas, industrials, power, consumer durables and realty indices cracking up to 2.65 per cent. The broader BSE midcap and smallcap indices plunged up to 1.23 per cent.

On the global front, stock markets struggled as the protracted US-China trade conflict showed no signs of easing, while investors digested a slew of corporate results.

Meanwhile, the Indian rupee depreciated 12 paise to 68.95 against the US dollar (intra-day).