Mumbai: Equity benchmark Sensex dropped over 100 points in early trade on Tuesday. Tracing losses in heavyweights Infosys, ICICI Bank and TCS amid a negative trend in global markets.
After slumping to 59,127.04 in the opening session, the 30-share Sensex was trading 102.49 points or 0.17 per cent lower at 59,196.83. Similarly, the Nifty fell 28.60 points or 0.16 per cent to 17,662.65.
Bajaj Finserv came out as top loser in the Sensex pack, shedding over 1 per cent, followed by Sun Pharma, Dr Reddy’s, Tech Mahindra, HCL Tech and ICICI Bank. On the other hand, Maruti, Bharti Airtel, PowerGrid and HUL were among the gainers.
In the previous session, the 30-share index ended 533.74 points or 0.91 per cent higher at 59,299.32, and Nifty surged 159.20 points or 0.91 per cent to 17,691.25.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 860.50 crore on Monday, as per exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities do not look to be good as of now. A sharp rise in oil prices is a fresh overhang of Indian equities, which can essentially result in further hardening of inflation and adversely impact the government’s fiscal math.
US stocks ended sharply lower with all three key indices contracting around 1-2 per cent in the overnight session mainly led by intensified concerns about prolonged inflationary pressure on rising oil prices, he noted.
Elsewhere in Asia, bourses in Seoul and Tokyo were trading with heavy losses, while Hong Kong was positive in mid-session deals. Shanghai was closed for the holidays.
Meanwhile, international oil benchmark Brent crude rose 0.37 per cent to USD 81.56 per barrel.