Indian shares traded lower on Thursday ahead of the expiry of August derivatives contract amid a weak set of cues. Trade sentiment remained subdued as concerns over a slowdown in global growth, which escalated after a sharp fall in bond yields in the US and pessimism over a US-China trade deal, dented risk appetite in equities. Closer at home, the sentiment was hit by fears that the government's measures to address the slowdown may not be enough.

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The Sensex slipped 127.58 points, or 0.34 percent, to 37,324 in the initial trade. The Nifty50 dipped 44 points, or 0.40 percent, to trade at 11002. The Nifty MidCap index fell 0.29 percent, while the banking gauge, Nifty Bank was down 0.46 percent.

Metal, auto, central public sector enterprises and infra were the worst-performing sectors, while realty, IT gained.

Among Nifty gainers, Sun Pharma, Eicher Motors, Dr Reddy's Labs, M&M and Maruti Suzuki gained by up to 4 percent.

Indiabulls Housing Finance, Yes Bank, JSW Steel, NTPC and Tata Motors share dipped by up to 6.7 percent.

Shares of Indiabulls Housing Finance fell over 5 percent as the mortgage stock will be removed from the Nifty50 index next month and will be replaced by Nestle India which surged 3 percent to hit its lifetime high of Rs 12,890.

Meanwhile, the rupee opened lower

against the US dollar at 71.91. The rupee declined by 29 paise to close at 71.77 against the US dollar on Wednesday as fears of an impending global recession prompted investors to stick to safe-haven assets like the Japanese Yen.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 923.94 crore on Tuesday, as per provisional data.

In debt markets, the yields on the 10-year government bonds were unchanged at 6.57 percent. Bond yields and prices move in opposite directions.

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