Markets trade lower in early deals on profit-taking in blue-chip stocks, foreign fund outflows

Mumbai: Benchmark indices Sensex and Nifty declined in early trade on Thursday amid profit-taking in blue-chip stocks and continuous foreign fund outflows.

Despite a positive start, the 30-share BSE Sensex failed to carry forward the momentum and fell later in the trade. The benchmark declined 130.92 points to 82,595.72 in early trade. The 50-share NSE Nifty dipped 23 points to 25,196.90.

From the Sensex firms, Trent, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finance, Tech Mahindra, Tata Consultancy Services, Infosys and Axis Bank were among the biggest laggards.

However, Tata Motors, Eternal, Sun Pharma and Tata Steel were among the gainers.

Infosys Ltd on Wednesday reported an 8.7 per cent rise in June quarter net profit and narrowed its full-year revenue forecast after stronger-than-expected earnings growth.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were trading in positive territory.

The US markets ended higher on Wednesday.

India and the UK will sign a free trade agreement on Thursday in London that will allow export of labour-intensive products such as leather, footwear and clothing at concessional rates, while making imports of whisky and cars from Britain cheaper.

The pact also helps double trade between the two economies to USD 120 billion by 2030.

"US striking trade deals with many countries is slowly removing concerns surrounding tariff wars. In the mother market US, good corporate earnings are providing the fundamental support to the market. Good Q1 numbers from Infosys can provide support to the weak IT index," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,209.11 crore on Wednesday, according to exchange data. However, Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,358.52 crore in the previous trade.

Global oil benchmark Brent crude climbed 0.31 per cent to USD 68.72 a barrel.

On Wednesday, the Sensex jumped 539.83 points or 0.66 per cent to settle at 82,726.64. The Nifty gained 159 points or 0.63 per cent to settle at 25,219.90.