Sensex tanks over 400 points in early trade
Equity benchmark Sensex tumbled over 400 points in early trade on Wednesday, dragged by losses in index majors HDFC twins, Infosys, and ICICI Bank amid a negative trend in global markets. The 30-share BSE index was trading 440.84 points or 0.88 percent lower at 49,695.74, and the broader NSE Nifty dropped 116.05 points or 0.78 percent to 14,729.05.
Who were the top gainers and losers?
The HDFC duo was the top laggard in the Sensex pack, shedding over 2 percent, followed by Tech Mahindra, PowerGrid, ICICI Bank, Infosys, and Kotak Bank. On the other hand, Bajaj Finserv, Reliance Industries, NTPC, Sun Pharma, Axis Bank, and Maruti were among the gainers.
Sensex had ended 2.30 percent higher in the previous session
In the previous session, the 30-share BSE index Sensex ended 1,128.08 points or 2.30 percent higher at 50,136.58, and the broader NSE Nifty settled at a nearly two-week high of 14,845.10. Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs. 769.47 crore on Tuesday, as per exchange data.
Strengthening dollar index can aggravate investors' concern
"Domestic equities don't look good at the moment. The recent announcements of night curfews and an indication of lockdown by Maharashtra authorities certainly do not augur well for equities," said Binod Modi, Head, Strategy at Reliance Securities. The strengthening dollar index, which gained 1.5 percent last week and surpassed 93 levels so far this week, can aggravate investors' concern in emerging markets including India.
Brent crude was trading at $64.46 per barrel
"US equities ended lower as concerns of rising bond yields and higher inflation once again weighed on investors' sentiments," Modi said. Elsewhere in Asia, bourses in Shanghai, Hong Kong, and Tokyo were in the red in mid-session deals, while Seoul was trading marginally higher. Meanwhile, the global oil benchmark Brent crude was trading 0.45 percent higher at $64.46 per barrel.
