Sensex down 140 points amid poor global cues

Mumbai, Aug 16 (IANS) The Sensex fell by 140 points during the early trade on Friday, dragged by finance and banking stocks.

All the sectoral indices except pharma stocks traded lower. Metal and IT stocks came under heavy selling pressure during the early trade.

Besides, markets are awaiting a stimulus package and relief for foreign portfolio investors from the super-rich surcharge announced in the Budget.

At 9.56 a.m., the Sensex traded 140.29 points lower or 0.38 per cent at 37,171.24.

The broader Nifty also traded lower at 10,975.95, down 53.45 points or 0.48 per cent.

Prime Minister Narendra Modi met Finance Minister Nirmala Sitharaman and Finance Ministry officials on Thursday, which gave way to hopes of market-friendly announcements soon.

However, global markets are under tremendous pressure ever since the US treasury bond yield curve inverted for the first time since 2007, a sign of an imminent recession in the US.

Global growth concerns are already disturbing as the German and the UK economies have contracted and are on the brink of a technical recession. Also, trade data from China and the US is far from encouraging.

An economy is said to have fallen into a recession if it logs two consecutive quarters of negative growth.

Although the Indian economy is far from a recession, but some of the sectors like auto and manufacturing have seen negative growth.

Foreign Institutional Investors (FIIs), meanwhile, have turned buyers in a positive development.

FIIs bought Rs 1,614.63 crore worth of shares while Domestic Institutional Investors (DIIs) purchased scrips worth Rs 1,619.82 crore.