NEW DELHI: Benchmark indices on Monday kicked off the week on a poor note, tracking weak cues from Asian markets after Republicans abandoned their effort to repeal and replace Obamacare policy with a new healthcare bill on Friday, as they lack votes in the US House of Representatives. That raised concerns over whether Trump has power to walk the talk.
Investors were cautious as the government was likely to table four GST-linked legislations in the Lok Sabha later in the day. In addition, shares of index heavyweight Reliance Industries was down in morning trade after F&O ban, which also contributed to the prevailing weakness.
At 9.20 am, the BSE Sensex was trading 78 points, or 0.27 per cent, lower at 29,343. Coal India fell 2.26 per cent to Rs 291.30 and was the worst Sensex performer. Reliance Industries dropped 1.43 per cent to Rs 1,266.65. Sebi has barred Reliance Industries and 12 other entities from dealing in futures and options segment for a period of one year, directly or indirectly, for allegedly indulging in fraudulent trades in Reliance Petroleum in 2007.
Tata Steel, Lupin and Asian Paints declined up to 1 per cent. Hindustan Unilever, Axis Bank and Power Grid advanced up to half-a-per cent.
The NSE barometer edged 31.20 points, or 0.34 per cent, lower at 9,076.80. Midcap and Smallcap indices were down up to 0.3 per cent.
Mustafa Nadeem, CEO, Epic Research noted that despite writing is seen at 9,100-9,200, sustainability of 9100 was still a concern.
“There is a broader range in play with 9,000 being the crucial support on downside. Short buildup is seen at 9,200 and 9,100 on both sides indicating a sideways momentum,” Nadeem said.