Sensex drops over 100 points in early trade

Mumbai: Equity benchmark Sensex dropped over 100 points in opening trade on Tuesday, tracking losses in index majors Reliance Industries, ICICI Bank and Kotak Bank amid weak trend in global equities.

The 30-share BSE index was trading 112.74 points or 0.23 per cent lower at 48,064.06, and the broader NSE Nifty fell 38.25 points or 0.27 per cent to 14,094.65.

ONGC was the top laggard in the Sensex pack, shedding around 2 per cent, followed by M&M, NTPC, Bajaj Auto, Kotak Bank, ICICI Bank and Reliance Industries.

On the other hand, Axis Bank, HDFC, TCS and HUL were among the gainers.

In the previous session, Sensex ended 307.82 points or 0.64 per cent higher at 48,176.80, and Nifty jumped 114.40 points or 0.82 per cent to its fresh lifetime high of 14,132.90.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 1,843.22 crore on a net basis on Monday, according to provisional exchange



data.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities are not looking inspiring at the moment with Asian bourses trading lower taking cues from US markets.

"US equities fell sharply mainly led by mounting concerns over potential rise in borrowing costs after the 10-Year Treasury break-even rate rose over 2 per cent yesterday and rise in COVID-19 cases along with resultant lockdowns.

"Fresh lockdown announced in Britain until at least mid-February weighed on investors' sentiment. All eyes would be on Georgia's run-off elections, in which two Senate seats have the potential to create fresh volatility in the markets," he said.

Elsewhere in Asia, bourses in Shanghai, Tokyo and Hong Kong were trading on a negative note in mid-session deals, while Seoul was in the positive terrain.

Meanwhile, the global oil benchmark, Brent crude, was trading 0.14 per cent lower at USD 51.02 per barrel.