Selling pressure in auto, banking indices erases morning gains

Equity benchmark indices opened with a sober note on Tuesday ahead of the general elections outcome and logjam between the United States and China on trade negotiations.

However, selling pressure witnessed in auto, realty, banking and IT indices erased morning gains within an hour.

At 10:15 am, the BSE S & P Sensex was up 148 points at 39,500 while the Nifty 50 gained was up 38 points at 11,867. Indices of financial services, FMCG, pharma and PSU banks were in the green.

Among the early gainers were Dr Reddy which gained nearly 4 per cent and Bharti Infratel which moved up 3 per cent. HDFC, Bajaj Finance and Indiabulls Housing Finance were also in the green.

But Tata Motors plunged over 5 per cent following disappointing results a day earlier. Tata Steel, Bharat Petroleum Corporation, Yes Bank and Hindalco were in the negative zone.

Meanwhile, Asian stocks were mixed as investors pondered over moves by the United States against Huawei Technologies.

Washington has temporarily eased trade restrictions imposed last week on the Chinese tech giant. Still, fears of a further escalation in tensions kept many investors on the edge.

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