Markets back in red amid global trade tension

Mumbai: Benchmark indices resumed their downward trend on Wednesday as investors took money off the table amid global trade jitters and election-related uncertainty.

After gyrating over 500 points intra-day, the BSE Sensex closed 203.65 points, or 0.55 per cent, lower at 37,114.88.

Similarly, the broader NSE Nifty shed 65.05 points, or 0.58 per cent, to settle at 11,157.

Markets had snapped their nine-session losing streak on Tuesday.

However, investors are still skittish about expanding their portfolio and every upmove is being used as an opportunity to book profits, experts said.

"Investors continue to be plagued by doubts surrounding global growth and US-China trade relations.

Higher oil prices could impact fiscal deficit and may force the new government to cut back infra spending," said Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas.

Sectorally, BSE metal, telecom, utilities, power, auto and banking indices lost up to 2.08 per cent lower. Realty, FMCG and IT logged modest gains. In the broader markets, the BSE mid-cap and small-cap indices followed the benchmarks, falling up to 0.67 per cent.

Sustained foreign fund outflows too weighed on investor sentiment.

Meanwhile, the Indian rupee appreciated by 11 paise to 70.33 against the US dollar intra-day.