Nifty, Sensex slip on global trade worries; rupee hits fresh low

By Abinaya Vijayaraghavan

(Reuters) - Indian shares slipped on Friday tracking muted global sentiment after a report that U.S. President Donald Trump was preparing to impose more tariffs on China and as losses in financials offset gains in technology and healthcare stocks.

Asian shares came under renewed pressure on Trump's trade war threats, which sent Chinese stocks lower and partially erased gains made in this week's global rally.

The broader NSE Nifty was down 0.25 percent at 11,647.2, while the benchmark BSE Sensex was 0.28 percent lower at 38,576.92.

Both indexes are on track for their sixth straight weekly gain, with the BSE up 1.01 percent and the NSE up 0.8 percent.

"Indian markets are also a little sluggish, trying to go up because of a few sectors which are leading the pack, but overall because of the global scenario, most of the markets are down," said Siddharth Sedani, VP, Head Equity Advisory, Anand Rathi.

HCL Technologies Ltd rose as much as 3.7 percent to become the top gainer on the Nifty index, while Dr. Reddy's Laboratories Ltd gained 2.2 percent in morning trade.

"The rupee depreciation is the main factor driving healthcare and IT sector," Sedani said.

The rupee fell to a record low of 71 per dollar in opening trade on Friday, tracking weakness in almost all other Asian peers as the latest round of U.S.-China trade tensions dulled investor risk appetite and boosted the dollar.

India's Idea Cellular Ltd rose as much as 6.1 percent after it completed its merger with Vodafone's India unit after approval from the National Company Law Tribunal.

Yes Bank Ltd fell as much as 3.8 percent to its lowest since May 11 after uncertainty around the continuation of its MD and CEO, Rana Kapoor.

Jet Airways (India) Ltd also fell as much as 2.4 percent, extending losses to a third straight session, after the Registrar of Companies sought comments in response to a complaint.

(Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Sunil Nair)