Sensex declines over 300 points while Nifty drops below 18,000 in early trade
- was down 303.07 points, or 0.50%, at 60,049.75
- Nifty also slid 102.60 points, or 0.57%, to 17,914.60
- Rupee falls 17 paise to 74.51 against US dollar
- Brent crude oil increased 0.23% to USD 82.83 per barrel
The Sensex fell more than 300 points in early trade on Thursday, reflecting losses in index-majors HDFC twins, ICICI Bank, and Infosys, amid a broadly negative trend in global markets and persistent foreign investment outflows.
In early trade, the 30-share index was down 303.07 points, or 0.50%, at 60,049.75. The Nifty also slid 102.60 points, or 0.57%, to 17,914.60.
Tech Mahindra was the Sensex pack's biggest loss, down roughly 2%, followed by HDFC, SBI, Nestle India, Axis Bank, HCL Tech, and ICICI Bank. On the other hand, Titan, Tata Steel, L&T, Bharti Airtel, and Maruti Suzuki were among the winners.
According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Wednesday, offloading shares worth Rs 469.50 crore.
"Rising inflation is emerging as a threat to the global equity rally, at least in the short-term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Consumer price inflation in the US has risen to a 30-year high of 6.2 percent, year-on-year, in October. In China, too, producer price inflation has risen to 13.5 percent. This has the potential to spill over to global commodity inflation, he cautioned.
Sensing the danger ahead, the US 10-year yield rose to 1.57 percent.
"The Fed still believes that the spike in inflation is caused by supply-side issues and, therefore, is transient. But there are many who believe that the Fed is behind the curve and that the entrenched inflation will force the Fed to accelerate tapering and advance rate hikes.
"If this scenario is to unfold, there can be a sell-off and sharp corrections in markets, globally," he said.
In other Asian markets, Hong Kong and Seoul were trading with losses in mid-session trades, while Shanghai and Tokyo were up. The major indices on Wall Street concluded the overnight session on a negative note.
Meanwhile, Brent crude, the international oil standard, increased 0.23% to USD 82.83 per barrel. Rupee falls 17 paise to 74.51 against US dollar in early trade.