Sensex drops over 250 points in early trade
Equity benchmark Sensex dropped over 250 points in early trade on Wednesday, tracking losses in index majors HDFC twins, Reliance Industries and Infosys amid a negative trend in global markets. The 30-share BSE index was trading 259.75 points or 0.49 percent lower at 52,319.01 in initial deals, while the broader NSE Nifty fell 77.15 points or 0.49 percent to 15,669.30.
Who were the top gainers or losers?
Nestle India was the top loser in the Sensex pack, shedding over one percent, followed by Dr. Reddy's, HDFC twins, Axis Bank, Kotak Bank, TCS, Reliance Industries, and Infosys. On the other hand, IndusInd Bank, Bharti Airtel, Tata Steel, and HUL were among the gainers.
Sensex had ended 0.52 percent lower in the previous session
In the previous session, the 30-share BSE index, Sensex ended 273.51 points or 0.52 percent lower at 52,578.76, and the broader NSE Nifty fell 78 points or 0.49 percent to 15,746.45. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 1,459.08 crore on Tuesday, as per provisional exchange data.
Change in China's market is affecting global markets
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "There is a mild risk-off sentiment in equity markets globally as reflected in the rising dollar." "The sell-off in Chinese tech stocks on Beijing's regulatory crackdown has triggered concerns about whether this sell-off will spread to other segments. China is too big now. It can cause flutters in global markets," he added.
Brent crude was trading at $73.92 per barrel
A significant trend in the market now is sectoral shifts, Vijayakumar noted, adding that there has been across the board selling in pharma stocks in the previous session. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul, and Tokyo were trading with losses in mid-session deals. Meanwhile, international oil benchmark Brent crude advanced 0.54 percent to $73.92 per barrel.