Markets

Sensex drops over 300 points in early trade, financial stocks drag

An employee at a stock brokerage office in Mumbai.

An employee at a stock brokerage office in Mumbai.   | Photo Credit: VIVEK BENDRE

Equity benchmark Sensex dropped over 300 points in early trade on July 14, dragged by losses in financial stocks amid selloff in global markets.

After touching a low of 36,339.07, the 30-share BSE Sensex was trading 277.05 points, or 0.76%, lower at 36,416.64.

In similar movement, the NSE Nifty fell 74.85 points, or 0.69%, to 10,727.85.

Shares of the HDFC duo led the fall in the indices, shedding up to 3%, after HDFC Bank said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.

IndusInd Bank, Bajaj Finserv, Axis Bank, Bajaj Finance, Maruti and SBI were among the other laggards.

On the other hand, HCL Tech, Infosys, Nestle India, UltraTech Cement and ITC were the gainers.

In the previous session, the BSE barometer ended 99.36 points, or 0.27%, higher at 36,693.69, and the Nifty closed 34.65 points, or 1.15%, up at 10,802.70.

Foreign institutional investors were net buyers in the capital market on Monday, purchasing equities worth ₹221.76 crore, provisional exchange data showed.

According to traders, besides stock-specific actions, negative cues from global markets amid escalating U.S.-China tension and rising COVID-19 cases dampened investor sentiment here.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with significant losses.

Stock exchanges on Wall Street also ended on a negative note.

Meanwhile, international oil benchmark Brent crude futures fell 2.06 per cent to $41.84 per barrel.

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Printable version | Aug 9, 2020 5:21:29 PM | https://www.thehindu.com/business/markets/sensex-drops-over-300-points-in-early-trade-financial-stocks-drag/article32074669.ece

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