In early trade on Wednesday, benchmark equity indices Sensex and Nifty experienced a significant decline, primarily led by losses in bank stocks and negative trends in Asian markets. The BSE Sensex dropped by 1,371.23 points to 71,757.54, while the Nifty plummeted by 395.35 points to 21,636.95.
HDFC Bank, one of the Sensex firms, witnessed a nearly 6% decline following the release of its December quarter earnings. The bank reported a 2.65% rise in consolidated net profit to Rs 17,258 crore, compared to Rs 16,811 crore in the previous quarter.
Other major laggards in the Sensex included Axis Bank, Tata Steel, Kotak Mahindra Bank, ICICI Bank, Tata Motors, and Bajaj Finance. On the positive side, gainers included Tata Consultancy Services, Reliance Industries, UltraTech Cement, Infosys, HCL Technologies, and Tech Mahindra.
In Asian markets, Seoul, Shanghai, and Hong Kong were trading lower, while Tokyo showed positive trends. The negative sentiment from global and domestic cues, including rising bond yields in the US and concerns about potential corrections in elevated valuations, contributed to the weaker market outlook.
The previous day saw the BSE benchmark breaking a five-day winning streak, with a decline of 199.17 points to settle at 73,128.77. The Nifty also ended lower by 65.15 points at 22,032.30. Global oil benchmark Brent crude declined to USD 77.84 a barrel. Foreign Institutional Investors (FIIs) bought equities worth Rs 656.57 crore on the preceding day, as per exchange data.
(With Agency Inputs)
ALSO READ | Sensex Surges as FMCG and IT Stocks Take the Lead in Market Growth
ALSO READ | Broader market rally cannot continue for long, warn analysts
