Markets

Sensex drops over 200 pts in early trade; Nifty tests 9,100 level

File photo of an employee trading at a stock brokerage office in Mumbai.

File photo of an employee trading at a stock brokerage office in Mumbai.   | Photo Credit: VIVEK BENDRE

In the previous session, the BSE barometer settled 885.72 points or 2.77% lower at 31,122.89, while the broader Nifty tanked 240.80 points, or 2.57%, to close at 9,142.75.

Equity benchmark Sensex dropped over 200 points in opening session on May 15 tracking losses in index heavyweights HDFC Bank, ICICI Bank and Reliance Industries amid weak domestic investor sentiment.

According to market experts, investors fear that Finance Minister Nirmala Sitharaman’s recent announcements on the ₹20-lakh-crore economic package may not boost demand immediately, and hence economic revival would not take place any time soon.

After touching a low of 30,909.36, the 30-share index was trading 127.19 points or 0.41% lower at 30,995.70.

Similarly, NSE Nifty slipped 34.45 points, or 0.38%, to 9,108.30.

M&M was the top laggard in the Sensex pack, cracking over 3%, followed by Maruti, HCL Tech, Hero MotoCorp, Axis Bank, ICICI Bank, ITC and HDFC Bank.

On the other hand, ONGC, Tata Steel, Bharti Airtel, Titan and HDFC were trading with gains.

In the previous session, the BSE barometer settled 885.72 points or 2.77% lower at 31,122.89, while the broader Nifty tanked 240.80 points, or 2.57%, to close at 9,142.75.

Foreign portfolio investors offloaded equities worth ₹2,152.52 crore in the capital market on May 14, provisional exchange data showed.

Besides, uncertainty over the effectiveness of the fiscal stimulus package, the spike in COVID-19 cases in the country weighed on investor sentiment, experts noted.

Ms. Sitharaman on May 14 announced a ₹3.16-lakh-crore package comprising free foodgrains for migrant workers, ₹2-lakh-crore concessional credit to farmers and working capital for street vendors in a bid to help those hit hard by the nationwide lockdown.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading marginally higher.

On Wall Street, stock exchanges settled on a positive note in overnight trade.

International oil benchmark Brent crude futures were trading 1.47% higher at $31.59 per barrel.

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Printable version | May 26, 2020 12:41:04 PM | https://www.thehindu.com/business/markets/sensex-drops-over-200-pts-in-early-trade-nifty-tests-9100-level/article31588667.ece

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