Mumbai: The key Indian equity indices turned to negative territory minutes on Friday after opening higher, with the Sensex trading over around 140 points lower.
Analysts say the fall comes due to the concerns of a liquidity crisis as DHFL earlier this week defaulted on a commercial paper.
Further, a lesser-than-expected rate cut also weakened the investor sentiment. The Reserve Bank of India (RBI) on Thursday announced a 25 basis points (bps) repo rate cut while there were expectations of a 35-50 bps cut.
At 9.42 a.m, the BSE Sensex traded at 39,391.48, lower by 138.24 points or 0.35 percent from the previous close of 39,529.72 points.
It had opened at 39,581.77, and so far touched an intra-day high of 39,614.51 and a low of 39,279.47 points.
The Nifty50 on the National Stock Exchange traded at 11,809.50, lower by 34.25 points or 0.29 percent from its previous close of 11,843.75 points.