Sensex drops over 200 points in early trade; Nifty slips below 14,400
U.S. markets witnessed high volatility last week especially after the announcement of $1.9 trillion stimulus program by President-elect Joe Biden.
Equity benchmark Sensex dropped over 200 points in early trade on Monday tracking losses in index majors Infosys, HDFC and TCS amid a mixed trend in global markets.
In a highly volatile opening session, the 30-share BSE index was trading 203.52 points or 0.42% lower at 48,831.15.
Similarly, the broader NSE Nifty fell 70.60 points or 0.49% to 14,363.10.
IndusInd Bank was the top loser in the Sensex pack, shedding around 3%, followed by PowerGrid, Maruti, Bajaj Finance, Bajaj Finserv and ONGC.
On the other hand, HDFC Bank, HCL Tech, SBI, Tech Mahindra and ICICI Bank were among the gainers.
In the previous session, Sensex slumped 549.49 points or 1.11% to finish at 49,034.67. The broader NSE Nifty tumbled 161.90 points or 1.11% to 14,433.70.
Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth ₹971.06 crore on Friday, as per exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities look to be soft at the moment.
“While underlying strength of markets remains intact considering the rebound in key economic data, sustained growth in corporate earnings in 3QFY21 with upbeat management commentaries and commencement of the vaccination process,” he said.
Additionally, “favourable monetary policies of global central bankers, weak dollar and large fiscal stimulus in the U.S. are expected to ensure sustained FPI flow in domestic equities,” he noted.
U.S. markets witnessed high volatility last week especially after the announcement of $1.9 trillion stimulus program by President-elect Joe Biden.
“Sell on news tendency led U.S. indices to register weekly loss of 0.9-1.5%. Further, indications by Biden about reversal of lower tax rates sooner also weighed on investor sentiments,” Mr. Modi added.
Elsewhere in Asia, bourses in Shanghai and Hong Kong were trading in the positive zone, while Seoul and Tokyo were in the red.
Meanwhile, the global oil benchmark Brent crude was trading 0.93% lower at $54.59 per barrel.
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