Sensex slips 300 points, Nifty falls by 90 points in early trade

The key indices began the week on a negative note, mirroring weak global market patterns, but quickly recovered all of the early losses and were trading in positive territory.

The Sensex fell 299.15 points to 58,541.64 in early trade. The Nifty slid 89.85 points to 17,441.

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Both benchmark indices regained all of their early losses and were trading higher. The Sensex rose 157.23 points to 58,998.02, whereas the Nifty gained 49.70 points to 17,580.55.

UltraTech Cement, Asian Paints, Titan, Dr Reddy’s, Tata Steel, HCL Technologies, Maruti, and ICICI Bank were the Sensex pack’s biggest laggards in early trade. Mahindra & Mahindra, IndusInd Bank, Infosys, Bajaj Finserv and State Bank of India were among the gainers.

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Indiabulls Housing Finance, India Cements, PVR and RBL Bank have been placed under the F&O ban for September 19.

Asian markets are trading mostly in red with Straits Times losing 5.40 points or 0.17% to 3,262.89, Hang Seng plunged182.48 points or 0.97% to 18,579.21, Taiwan Weighted slumped109.75 points or 0.75% to 14,452.01, KOSPI sank26.53 points or 1.11% to 2,356.25 and Shanghai Composite was down by 4.94 points or 0.16% to 3,121.46, while Jakarta Composite was up by 3.73 points or 0.05% to 7,172.60.

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The US markets had ended in negative territory on Friday. The S&P 500 fell 28.02 points, or 0.72%, to 3,873.33. The Dow Jones Industrial Average fell 139.40 points, or 0.45%, to 30,822.42. The Nasdaq composite fell 103.95 points, or 0.90%, to 11,448.40. The Russell 2000 index of smaller companies fell 27.04 points, or 1.48%, to 1,798.19.

“The near-term texture of the market has turned weak and the buy on dips strategy is unlikely to work in the present risk-off global environment. FIIs turning sellers is a short-term negative. The market is likely to take a decisive trend only after the Fed policy announcement on 21st September,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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On Friday, the Sensex fell 1,093.22 points, or 1.82%, to 58,840.79. The Nifty slid 346.55 points, or 1.94%, to 17,530.85.

Foreign institutional investors (FIIs) sold shares worth a net Rs 3,260.05 crore, whereas domestic institutional investors (DIIs) offloaded shares worth a net Rs 36.57 crore on September 16, as per provisional data available on the NSE.

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Separately, Brent crude, the global oil benchmark, rose 0.62% to USD 91.92 a barrel. The rupee rose 14 paise to 79.64 against the US dollar in early trade on Monday, tracking Asian peers and as the US currency dropped from recent highs.