Sensex tanks over 300 points, Nifty tests 11,500-mark in early session; bank, IT, auto stocks trade negative

The equity benchmark BSE Sensex sank over 300 points in early session on Wednesday, dragged by losses in banking, IT and auto stocks amid negative global cues and foreign fund outflow. The 30-share index was trading 303.70 points, or 0.78 percent, lower at 38,793.44 at 0930 hours, while the broader Nifty fell 92.70 points, or 0.80 percent, to 11,495.50. In the previous session on Tuesday, the BSE barometer ended with a meagre gain of 7.11 points, or 0.02 percent, at 39,097.14, while the Nifty settled 12 points, or 0.10 percent, lower at 11,588.20. Zee Ent, SpiceJet, Power Grid, Marico, Titan, TCS are among major gainers on the Indices, while losers are HDFC, Axis Bank, Britannia, Bajaj Finance, UPL and AU Small Bank, HDIL, Bank of Baroda and Yes Bank. Top laggards in the Sensex pack in early trade included Tata Motors, SBI, HDFC twins, Vedanta, Tata Steel, Kotak Bank, Axis Bank, Maruti, Infosys, ITC and ICICI Bank, shedding up to 3 percent.

Among sectors, except IT all other indices are trading in the red. Midcap and smallcap indices are also trading with marginal loss. On the other hand, PowerGrid, RIL, NTPC, TCS, HCL Tech, Tech Mahindra and Bharti Airtel rose up to 2 percent.

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According to traders, domestic equities opened on a weak note tracking negative news from global markets, PTI said. Asian stocks fell on Wednesday after the US lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty in the world’s largest economy. [caption id=“attachment_4444277” align=“alignleft” width=“380”]  Representational image. Reuters.[/caption] Top US Democrat Nancy Pelosi’s announced the opening of a formal impeachment inquiry into President Donald Trump, saying he betrayed his oath of office by seeking help from a foreign power to hurt his Democratic rival Joe Biden. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.2%, Japan’s Nikkei .N225 fell 0.55 percent, while Australian shares fell 0.66 percent. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower in their respective late morning sessions after US President Donald Trump put China on notice at the United Nations, declaring that the time of trade “abuses” by Beijing was “over” and calling on the country to protect Hong Kong’s “democratic ways of life.” Global market sentiment also turned negative following top US Democrat Nancy Pelosi’s announcement of the opening of a formal impeachment inquiry into President Donald Trump, saying he betrayed his oath of office by seeking help from a foreign power to hurt his Democratic rival Joe Biden. Shares on Wall Street ended in the red on Tuesday. The rupee, meanwhile, depreciated 7 paise against its previous close to 71.08 in early session. The dollar nursed losses against most major currencies as the impeachment inquiry sets the stage for a fierce battle between Democrats and Trump’s Republican Party over whether the president sought foreign influence to smear a political rival, Reuters said. Sterling remained broadly supported in Asia after the UK Supreme Court ruled Prime Minister Boris Johnson’s decision to shut down parliament was unlawful, a move that could thwart his plan to pull Britain out of European Union next month with or without a deal. Global oil benchmark Brent crude fell 0.71 percent to 62.65 per barrel (intra-day). Oil futures declined, reflecting concerns that political uncertainty and US-China trade friction will weigh on global economic growth. “There are a lot of factors out there that could potentially hurt market sentiment,” said Tsutomu Soma, general manager of fixed income business solutions at SBI Securities in Tokyo. “However, some hedge funds have to close their books at the end of the month, so it may be difficult for the market to move.” On Tuesday, foreign portfolio investors sold shares worth a net of Rs 828.49 crore, while domestic institutional investors bought equities worth Rs 472.81 crore, provisional data showed. --With inputs from agencies