Equity benchmark Sensex dropped over 500 points in early trade today, tracking losses in index majors HDFC twins, Reliance Industries and Infosys amid a weak trend in global markets.
At 10:41 hours, the 30-share BSE index was trading 539 points or 1.03% lower at 52,039.62, while the broader NSE Nifty fell 160 points or 1.02% to 15,586.50.
Dr. Reddy’s was the top loser in the Sensex pack, shedding over 3%, followed by L&T, Axis Bank, M&M, Sun Pharma and NTPC.
On the other hand, IndusInd Bank, Bajaj Finserv, Bharti Airtel, Titan and HUL were among the gainers.
According to V.K. 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 selloff in Chinese tech stocks on Beijing’s regulatory crackdown has triggered concerns about whether this selloff will spread to other segments. China is too big now. It can cause flutters in global markets,” he said.
A significant trend in the market now is sectoral shifts, he noted, adding that there has been across the board selling in pharma stocks in the previous session. “Profits booked in this segment are moving into other sectors. The relative outperformance in frontline financials indicates a sectoral shift.”
Indian benchmark indices opened lower amid weak global cues. At 09:18 hours, the 30-share BSE index was trading 258.6 points or 0.49 per cent lower at 52,320.13, and the broader NSE Nifty was down 68.5 points or 0.44 per cent to 15,677.90.
