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NEW DELHI: Weak global sentiment, caution ahead of RBI policy decision and rupee's fall weighed on domestic equity market, dragging the benchmark Sensex over 200 points lower in opening trade.
Caution crept in the market ahead of RBI rate decision which morphed into bearish mood owing to weakness in Asian peers.
Asian stocks came under pressure, tracking a fall in the US equities as a flattening US Treasury yield curve stoked investor worries about global economic growth.
Besides, doubts over the ability of the US and China to find a substantial solution of trade dispute during the temporary cease-fire period agreed at the G20 summit kept investors on edge.
However, as per media reports, the US President on Tuesday talked about the possibility of an extension of the 90-day trade truce with Beijing but said tariffs may be reverted if the two sides could not resolve their differences.
Around 9:25 am, the BSE Sensex was 207 points, or 0.57 per cent, down at 35,927, while the NSE Nifty50 index was 63 points, or 0.58 per cent, down at 10,807.
BSE Midcap and Smallcap indices fell in line with the benchmark Sensex and were trading 0.45 per cent and 0.50 per cent down, respectively, at that time.
Out of total 31 stocks in the Sensex index, 26 were incurring losses and only five - ONGC (up 0.72 per cent), NTPC (up 0.56 per cent), Adani Ports (up 0.40 per cent), Asian Paints (up 0.32 per cent) and State Bank of India (up 0.07 per cent) - were trading in the green zone.
Tata Motors fell 2 per cent, leading the pack of Sensex losers in the early trade.
It was followed by IndusInd Bank, Tata Steel, Mahindra Mahindra and ITC.
Shares of Tata Motors slipped after rating agency SP Global Ratings downgraded the credit rating of the company and its British arm Jaguar Land Rover Automotive Plc.
Barring oil gas, all sectoral indices were in the red on BSE.
Gains in Indian Oil Corporation, ONGC, BPCL, HPCL, GAIL and Oil India were keeping the sectoral index up.
Shares of oil marketing firms climbed amid weakness in global crude oil prices as swelling US inventories and a plunge in global stocks dragged oil prices down.
