After witnessing six straight day of losses, Indian benchmark indices opened lower once again in trade, on weakish global cues. The Sensex was trading lower by 150 points and is now down nearly 1,800 points from peak levels.
Shares in Reliance Industries was once again adding pressure to the indices, with the stock down more than 2 per cent for the second straight day. On the other hand, shares in Yes Bank, gained nearly 2 per cent, despite the stock being downgraded by a leading rating agency.
Shares in Shriram Transport fell almost 3 per cent, after its quarterly numbers disappointed the street. The Net profit of the firm was down 22.4 percent to Rs 746 crore.
Software stocks saw good buying support, following a drop in the rupee. Infosys and TCS led gainers from the sector.
On the macro front, the Reserve Bank on May 8 warned of the rising risks to fiscal consolidation of the states as their finances are saddled with farm loan waivers, income support schemes and the Uday bonds for their power distribution companies.
Asian markets were trading sharply lower, following worries over trade wars with China. The Hang Sang, the Shanghai Composite and the Japanese Nikkei were all trading lower.
The United States will raise tariffs from 10 percent to 25 percent on $200 billion worth of Chinese imports effective May 10, according to a notice posted to the Federal Register on May 8.