Sensex Opens Weak; Metal & Realty Stocks Fall

Asian stock markets are lower today as Chinese and Hong Kong shares fall. The Shanghai Composite is off 1.4% while the Hang Seng is down 2.8%. The Nikkei 225 is trading down by 1.8%. Global stocks extended declines into a second session Wednesday, following on from last night's sharp selloff on Wall Street, as investors continued to question that fate of US-China trade talks.

Back home, India share markets have opened the day on a weaker note. The BSE Sensex is trading down by 236 points while the NSE Nifty is trading down by 78 points. The BSE Mid Cap index opened the day down by 0.8% while BSE Small Cap index opened down by 0.6%.

Sectoral indices have opened the day on a negative note with metal stocks and realty stocks witnessing maximum selling pressure.

The rupee is currently trading at Rs 70.84 against the US$.

Oil prices fell today, and trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30% since October.

Talking about the OPEC meeting and its impact on crude oil prices, here's some interesting data.

After OPEC meetings, crude oil prices have seen volatile moves both ways.

Look at this chart...

Volatile Up and Down Moves Post-OPEC Meetings

In the news from the economy. Following a three-day meeting, the Reserve Bank of India's monetary policy committee (MPC) kept the repo rate unchanged at 6.5% on the back of a fall in crude oil prices and lower-than-expected inflation.

The reverse repo rate was also kept unchanged at 6.5%. Repo rate is the rate at which the central bank lends to other banks.

This is for the second time in a row that the central bank did not tinker with the interest rate. For the layman, this means that home loan and car loan rates will remain the same.

The central bank has also retained GDP growth projection for 2018-19 at 7.4%. The committee also revised the inflation target for the second half to 2.7%.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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