Mumbai: Equity Benchmark Sensex fell more than 700 points in early trading on Tuesday, tracking losses in the Infosys Department Index, ICICI Bank and Reliance Industries amid persistent foreign funds.
After touching a low of 57,718.34 in the opening session, the 30-share index contained several losses to trade 264.20 points or 0.45% lower at 58.201.69.
Similarly, Nifty traded 89.05 points or 0.51% at 17,327.50.
This touches low 17,216.10 in the initial transaction.
Infosys, the top loser in the Sensex package, spilled around 2 percent, followed by ICICI Bank, Hul, Bajaj Auto, Reliance Industries and TCS.
On the other hand, Tata Steel, Powergrid, Bajaj Finance and ITC are among the enhancers.
In the previous session, Sensex ended 1,170.12 points or 1.96 percent lower at 58,465.89, and Nifty fell 348.25 points or 1.96 percent to 17,416.55.
Foreign institutional investors (FIIS) are clean sellers in the capital market, because they lowered shares worth Rs 3,438.76 Crore on Monday, according to data exchange.
“RIL heavyweight market reevaluates Aramco’s agreement, list of disasters Paytm, Covid’s rise in several parts of Europe, RBI warnings from stretching assessments, foreign brokers to reduce India and roll the agricultural laws create a perfect storm that is amazing the market.” Vk Vijayakumar said Head of investment strategist at Geojit Financial Services.
This is a very necessary correction that will make a healthy market, he said, adding that Paytm’s failure is an examination of reality in the foam in the primary market and will withstand populated beginner investors irrationally.
“While Nifty has corrected 6.4 percent of the peak, the Nifty Bank has corrected 12.4 percent of the peak which shows weakness in the banking sector even though the assessment is not stretched in banking.” Sustainable sales by Fiis will continue to be negative sentiments in Indonesia markets.
Retail investor response to corrections must be watched, “he said.
Elsewhere in Asia, the stock exchange in Hong Kong and Seoul traded with losses in the middle agreement, while Shanghai and Tokyo were positive.
The US stock market ended mostly ended in the US.
Red on the US Overnight session.
Meanwhile, Benchmark International Oil Brent crude oil fell 0.45 percent to $ 79.34 per barrel.
Sensex Tanks more than 700 points in early trade; Nifty test 17,300.
