Sensex tanks over 300 points; Nifty tests 15,500
Equity benchmark Sensex tumbled over 300 points in early trade on Wednesday, tracking losses in index-heavyweights HDFC, Infosys, and ICICI Bank amid a largely negative trend in global markets. The 30-share BSE index was trading 309.54 points or 0.60 percent lower at 51,625.34 in initial deals, and the broader NSE Nifty fell 70.45 points or 0.45 percent to 15,504.40.
Here are the winners and the losers
Tech Mahindra was the top loser in the Sensex pack, shedding over three percent, followed by ITC, HDFC, HCL Tech, Kotak Bank, Infosys, and ICICI Bank. On the other hand, NTPC, PowerGrid, Sun Pharma, Maruti, and Reliance Industries were among the gainers.
FIIs offloaded shares worth Rs. 449.86 crore on Tuesday
In the previous session, Sensex ended 2.56 points lower at 51,934.88, while the broader NSE Nifty slipped 7.95 points or 0.05 per cent to 15,574.85. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 449.86 crore on Tuesday, as per provisional exchange data. Experts say declining COVID-19 numbers are a major factor affecting the markets.
Declining COVID-19 cases and rising recovery rates are major factors
"The steady decline in fresh COVID-19 cases and rising recovery rates indicate that India is succeeding in bending the pandemic's curve," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. "With no short-term risks to the market, consolidation is likely in the near term with a stock-specific action... Over-valued investors should exercise caution even when the markets are exhibiting surprising resilience," he added.
Brent crude is trading at $70.42 per barrel
Elsewhere in Asia, bourses in Shanghai, Hong Kong, and Seoul were trading in the negative territory in mid-session deals, while Tokyo was trading in the positive territory. Equities on Wall Street closed with losses in the overnight session. International oil benchmark Brent crude was trading 0.24 percent higher at $70.42 per barrel.