Sensex drops over 100 pts in early trade; Nifty slips below 15,800

Equity benchmark Sensex dropped over 100 points in early trade on Wednesday, tracking losses in index majors ICICI Bank, HDFC twins and Reliance Industries amid a negative trend in global markets. The 30-share BSE index was trading 104.99 points or 0.20 percent lower at 52,664.74 in initial deals, while the broader NSE Nifty slipped 31.80 points or 0.20 per cent to 15,780.55. Maruti was the top loser in the Sensex pack, slipping around 1 percent, followed by ICICI Bank, HDFC, Axis Bank, IndusInd Bank and Tata Steel. On the other hand, Tech Mahindra, L&T, HCL Tech and Sun Pharma were among the gainers. In the previous session, Sensex ended 397.04 points or 0.76 percent higher at 52,769.73, and the broader NSE Nifty surged 119.75 points or 0.76 per cent to settle at 15,812.35. Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 113.83 crore on Tuesday, as per provisional exchange data. According to Binod Modi Head-Strategy at Reliance Securities, benchmark Nifty appears to be consolidating in the range of 15,600-15,900. “However, we continue to believe that any meaningful correction in the market should be taken as an opportunity to get in quality stocks. “Visible improvement in key economic data including IIP, import-export business momentum and visible traction in overall economic activities in June indicates healthy corporate earnings for 1QFY22E despite the second wave of COVID-19,” he said. US markets finished lower as a higher-than-expected jump in CPI print for June weighed on investors’ sentiments, he added. Elsewhere in Asia, bourses in Shanghai, Seoul, Hong Kong and Tokyo were trading with losses in mid-session deals. Meanwhile, international oil benchmark Brent crude declined 0.31 per cent to $76.25 per barrel.