Benchmark indices opened the day lower once again in trade, after having closed six straight days with losses. The Nifty was trading with losses of 41 points, while the Sensex dropped 155 points in trade.
Leading the set of losers were some of the heavyweight stocks like TCS and Reliance Industries. Both these stocks have the highest weight in the Sensex.
Oil marketing company stocks were trading lower, following a rally in crude prices. HPCL, BPCL and Indian Oil were all down in trade.
Crude oil surged and Brent Crude crossed the $66 per barrel mark on hopes of a US-China deal. Shares of ONGC surged following the rally in crude and was the top Nifty gainer.
Shares in Yes Bank dropped in trade, after the RBI rapped the bank for disclosing details of non divergence, which the RBI deemed as confidential. The shares were down 5 per cent in trade.
Stocks from the Anil Ambani-led group companies rallied in today's trade. The group has reached a "standstill agreement" with more than 90 percent of its lenders under which they will not sell any of the shares pledged by promoters till September. Reliance Capital was up 8 per cent, while Reliance Infrastructure was u 7 per cent in trade.
Meanwhile, global markets were trading significantly higher on hopes of a US-China deal. Most Asian markets were up with the Japanese Nikkei leading the charge with gains of near 1.85 per cent. Other markets, which were trading higher included the Hang Sang and the Korean Kospi.