Sensex declines over 500 points while Nifty drops below 17,500 in early trade

The Sensex fell more than 500 points in early trade on Friday, mirroring losses in index heavyweights HDFC twins, ICICI Bank, and Infosys, as foreign money outflows continued and global markets weakened.

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The 30-share Sensex was down 500.67 points, or 0.85%, at 58,625.69. Similarly, the Nifty fell 150.40 points, or 0.85%, to 17,467.75.

Maruti was the Sensex pack’s biggest loss, falling approximately 2%, followed by HDFC Bank, Bajaj Finserv, ICICI Bank, Bharti Airtel, and HDFC. On the other hand PowerGrid, NTPC, Bajaj Auto, M&M, and Dr. Reddy were among the winners.

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The 30-share index was down 286.91 points, or 0.48 percent, to 59,126.36 in the previous session, while the Nifty fell 93.15 points, or 0.53 percent, to 17,618.15.

According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Thursday, offloading shares worth Rs 2,225.60 crore.

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“The risk-off in equity markets has gathered momentum with sharp cuts in the mother market of the US. The Dow and S&P 500 are now more than 5 percent off from their record highs. Markets, globally, have turned weak,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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He further noted that there are indications of a correction in India too. The leader of this rally, IT, is showing signs of exhaustion. When the leader turns weak, the resilience of the market will be tested. Sustained FII selling is another negative signal.

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In other Asian markets, Tokyo and Seoul bourses were trading in the red in mid-session trades. The markets in Shanghai and Hong Kong were closed for the holidays. Wall Street equities also closed the overnight session with heavy losses.

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Meanwhile, Brent crude, the international oil benchmark, slipped 0.19 percent to USD 78.16 per barrel. In early trade, the rupee falls 12 paise to 74.35 against the US dollar.