Sensex tanks over 400 points in early trade
Equity benchmark Sensex tumbled over 400 points in early trade on Wednesday, tracking losses in index majors HDFC twins, Reliance Industries and ICICI Bank amid negative cues from global markets. The 30-share BSE index was trading 403.16 points or 0.82 percent lower at 48,758.65 in initial deals. Similarly, the broader NSE Nifty fell 112.80 points or 0.76 percent to 14,737.95.
Who were the top gainers and losers?
HDFC was the top loser in the Sensex pack, shedding over two percent, followed by M&M, HUL, Nestle India, Tech Mahindra, and ICICI Bank. On the other hand, PowerGrid, NTPC, L&T, SBI, and ONGC were among the gainers.
Sensex had ended 0.69 percent lower in the previous session
In the previous session, equity benchmark Sensex ended 340.60 points or 0.69 percent lower at 49,161.81, and the broader NSE Nifty slumped 91.60 points or 0.61 percent to close at 14,850.75. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 336 crore on Tuesday, according to provisional exchange data.
Market trends to depend on economic recovery and inflation fears
According to VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, "Global markets are now caught between two opposing forces, economic recovery and inflation fears. Going forward, the market trend will depend on which of the two triumphs over the other."
US market is apprehensive of rising inflation
The year-on-year inflation in the US is expected to come around 3.6 percent, which may not sustain. But if the month-on-month inflation data shows a surge, the dovish Fed will be forced to take it seriously, Vijayakumar said. The fact that the market is a bit apprehensive of rising inflation is reflected in the US 10-year yield rising above 1.6 percent.
Market participants will also keep an eye on domestic inflation
"Meanwhile in India, Q4 results continue to be good with better than expected performance from mid-small-caps. Market action is likely to be stock specific based on results," Vijayakumar noted in his statement. Further, market participants will also keep an eye on domestic inflation and industrial production data, scheduled to be released later in the day, traders said.
Brent crude trading at $68.30 per barrel
Elsewhere in Asia, the markets were not trading in green either. Bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading on a negative note in mid-session deals. On Wall Street in the US, indices ended in the red in overnight sessions. Meanwhile, international oil benchmark Brent crude was trading 0.36 percent lower at $68.30 per barrel.
