Mumbai - Stocks are drifting lower in early trades on the Indian bourses Friday morning, tracking weak cues from Asian markets following a sharp rise in treasury yields amid looming prospects of U.S. interest rate hikes.
Data showing a slow down in manufacturing activity in November weigh as well on sentiment. A report from Markit showed India's PMI declined to 52.3 in November following demonetisation move, after having come in with a reading of 54.4 in the preceding month. According to the Nikkei Markit India Manufacturing Purchasing Managers' Index, the withdrawal of 1000 and 500 rupees banknotes reportedly hampered manufacturing growth in November, as it brought in lower than expected orders and resulted in lower output and purchases.
The BSE benchmark Sensex, which declined to 26,346.45, is currently down 172.40 points or 0.65% at 26,387.52. The Nifty50 of the National Stock Exchange is down 62.20 points or 0.76% at 8130.70, after declining to a low of 8125.00.
In the forex market, the rupee is trading at 68.35 against the U.S. dollar, little changed from its previous close.
HDFC, Dr Reddy's Laboratories, ITC, Adani Ports, Asian Paints, Larsen & Toubro and HDFC Bank are down 1% - 2.3%. Infosys, Bharti Airtel, NTPC, Lupin, ICICI Bank, Tata Consultancy Services, Tata Consultancy Services, Hindustan Unilever, Maruti Suzuki and Power Grid Corporation are also trading weak.
Kotak Bank, IndusInd Bank, Idea Cellular, BPCL and Zee Entertainment Enterprises are down 1% - 2.3%. ACC, BHEL, Yes Bank, Bosch, Aurobindo Pharma and Ambuja Cements are lower by 0.5% - 0.8%.
Coal India is gaining 1.7%. Tata Motors, ONGC, Tata Steel, Hero Motocorp and Sun Pharmaceutical Industries are up marginally.
Eicher Motors, up 2.3%, is the top gainer in the Nifty50 index. Tata Motors DVR, HCL Technologies, Tech Mahindra, Hindalco, Bharti Infratel and Tata Power are up 0.5% - 1.5%.