Sensex rises over 700 points in opening trade; Nifty test 17,300
Equity benchmark Sensex fell over 700 points in early trade on Tuesday, with losses in index majors Infosys, ICICI Bank and Reliance Industries amid persistent foreign fund outflows.
After touching a low of 57,718.34 in the opening session, the 30-share index fell 264.20 points, or 0.45 per cent, to trade at 58,201.69. Similarly, Nifty was trading at 17,327.50, down 89.05 points or 0.51 per cent. It touched a low of 17,216.10 in opening deals.
Infosys, the top loser in the Sensex pack, declined nearly 2 per cent, followed by ICICI Bank, HUL, Bajaj Auto, Reliance Industries and TCS. On the other hand, Tata Steel, PowerGrid, Bajaj Finance and ITC were among the gainers.
In the previous session, the Sensex was down 1,170.12 points or 1.96 per cent at 58,465.89 and the Nifty was down 348.25 points or 1.96 per cent at 17,416.55. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 3,438.76 crore on Monday, according to exchange data.
“Market heavyweight RIL revalues Aramco deal, Paytm’s disastrous listing, COVID resurgence in parts of Europe, RBI warnings of hiked valuations, foreign brokerages downgrading India and roll back of agricultural laws set off a perfect storm That rocked the market, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
This is a much-needed reform that will make the market healthy, he said, adding that Paytm’s fiasco is a reality check in the primary market and will irrationally rein in enthusiastic newbie investors.
“While Nifty has corrected 6.4 per cent from peak, Nifty Bank has corrected 12.4 per cent from peak, indicating weakness in the banking sector even if valuations in banking are not raised. Continued selling by FIIs The negative sentiment will remain in the market. The correction has to be seen from the retail investors,” he said.
Elsewhere in Asia, shares in Hong Kong and Seoul were trading with losses in mid-session deals, while Shanghai and Tokyo were positive. Stock exchanges in the US ended the overnight session largely in the red.
Meanwhile, international oil benchmark Brent crude fell 0.45 per cent to $79.34 a barrel.
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