Mumbai: Benchmark Sensex equity index fell more than 250 points in early trading on Friday, following losses in the HDFC twins of index heavyweights ICICI Bank and Kotak Bank amid weak signals from markets global. The market is pausing at these levels with a higher chance of profit booking, experts said.
The 30-share BSE index was trading 251.44 points or 0.58 percent lower at 43,105.75. Similarly, the overall NSE Nifty fell 68.95 points or 0.54 percent to 12,621.85.
IndusInd Bank was the main loser in the Sensex package, losing about 3 percent, followed by SBI, L&T, Axis Bank, HDFC twins, Kotak Bank, and ICICI Bank. On the other hand, Asian Paints, Reliance Industries, Titan, Bajaj Finance and Sun Pharma were trading with gains.
In the previous session, Sensex closed 236.48 points or 0.54 percent lower at 43,357.19, while Nifty fell 58.35 points or 0.46 percent at 12,690.80. Foreign institutional investors remained net buyers in the capital market, buying shares worth 1,514.12 crore on Thursday, according to interim exchange data.
Established trading in India does not appear to be inspiring as global markets are now trading lower following the lead of US equities, said Arjun Yash Mahajan, director of institutional business at Reliance Securities. Amid the earnings reserve, the market did not react much yesterday after the announcement of fiscal stimulus under Aatmanirbhar Bharat 3.0 by the Finance Ministry, he said.
Meanwhile, industrial production entered positive territory after a six-month gap, mainly due to higher production in the mining and energy sectors, official data showed Thursday. Industrial production grew 0.2 percent in September, according to data from the Industrial Production Index (IIP).
On the global front, US equities closed lower as investors became cautious due to the continued rise in COVID-19
cases and possibilities of greater restrictions on companies to a great extent. Furthermore, the mitigating prospects for an early fiscal stimulus due to Donald Trump’s tough stance on the outcome of the US elections may not result in a smooth transition for the new government, which also weighed on investor sentiments, he added. Mahajan.
In the rest of Asia, the Shanghai, Hong Kong and Tokyo stock exchanges were losing in mid-session trading, while Seoul was positive. Brent crude oil’s international benchmark was trading 1.59 percent lower at $ 42.84 a barrel.
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