Sensex falls 500 points while Nifty below 17,620 in early trade

The Sensex fell more than 500 points in early trade on Wednesday, mirroring losses in index heavyweights HDFC Bank, ICICI Bank, and Infosys amid a worldwide market selloff. The Sensex was down 501.74 points, or 0.84 percent, at 59,165.86. Likewise, the Nifty fell 135.05 points, or 0.76 percent, to 17,613.55.

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Sensex’s biggest loss was ICICI Bank, which fell about 2%, followed by HDFC Bank, Maruti, Bajaj Auto, Infosys, and Bajaj Finserv. On the other side Dr. Reddy’s, Tata Steel, Sun Pharma, and Nestle India, were among the winners.

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In the previous session, the 30-share index down 410.28 points, or 0.68 percent, to 59,667.60, while the Nifty fell 106.50 points, or 0.60 percent, to 17,748.60.

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According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, offloading shares worth Rs 1,957.70 crore.

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According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the rise in the benchmark US 10-year yield to 1.546 percent has frightened stock markets in the US, with S&P 500 and Nasdaq down more than 2%.

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“The rise in US bond yields triggering correction in equity markets has been a known threat for some time now. But what triggered this sudden spike in bond yield was the Fed chief Jerome Powell’s statement that inflation may persist for a much longer time,” he said. Further, he noted that the rise in the dollar index to 93.7 levels indicates profit booking in stocks and safe-haven buying into the dollar. “It is too early to conclude that this is a trend reversal for markets. But at the present elevated valuations, the risk is high. Investors may watch for consolidation in markets,” he added.

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In other Asian markets, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading with significant losses in mid-session trades.

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Meanwhile, the international oil benchmark Brent crude lost 1.51% to USD 77.17 a barrel. Rupee slips 12 paise to 74.18 against US dollar in early trade.