Sensex drops over 100 points in early trade; Nifty tests 17,850

Markets

M&M was the top loser in the Sensex pack followed by HCL Tech, Tech Mahindra, Dr Reddy’s, Maruti, Bajaj Auto and TCS.

Equity benchmark Sensex fell over 100 points in early trade on Thursday, tracking losses in index majors Infosys, Reliance Industries and TCS amid a negative trend in global markets and sustained foreign fund outflow.

Despite opening on a positive note, the 30-share index turned red to trade 112.13 points or 0.19% lower at 59,896.20. Similarly, the Nifty fell 35.95 points or 0.20 % to 17,862.70.

M&M was the top loser in the Sensex pack, shedding over 1%, followed by HCL Tech, Tech Mahindra, Dr Reddy’s, Maruti, Bajaj Auto and TCS.

On the other hand, SBI, HDFC Bank, ITC, Bajaj Finserv and Bajaj Finance were among the gainers.

In the previous session, Sensex ended 314.04 points or 0.52% lower at 60,008.33, extending losses, and Nifty fell by 100.55 points or 0.56% to 17,898.65.

Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded shares worth ₹344.35 crore on Wednesday, as per exchange data.

“The market momentum has weakened recently, and the market appears to be heading for a risk-off mode. Lofty valuations, downgrading of India by many foreign brokerages, warning observations from the RBI and sustained selling by FIIs have contributed to this weakness in the market,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Globally, fresh COVID cases in parts of Europe are concerns. There is fear that fresh COVID- related disruptions may further aggravate supply-side issues adding fuel to the inflation fire, he noted.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with losses in mid-session deals.

Stock exchanges in the U.S. also ended in the red in the overnight session.

Meanwhile, international oil benchmark Brent crude fell 0.54% to $79.84 per barrel.

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