Markets

Sensex falls over 300 points in early trade ahead of futures and options expiry

Bull statue at the entrance of the Bombay Stock Exchange (BSE)

Bull statue at the entrance of the Bombay Stock Exchange (BSE)   | Photo Credit: REUTERS

According to traders, expiry of June futures and options contracts and border tension with China has added volatility to the market.

Equity benchmark Sensex tumbled over 300 points in early trade on Thursday tracking losses in index-heavyweights HDFC twins, Infosys and ICICI Bank ahead of the expiry of June derivatives.

Weak cues from global markets also weighed on investor sentiment here, traders said.

After touching a low of 34,499.78, the 30-share index was trading 343.59 points, or 0.99%, lower at 34,525.39.

Similarly, NSE Nifty fell 99.10 points, or 0.96%, to 10,206.20.

Infosys was the top loser in the Sensex pack, shedding around 3%, followed by HDFC Bank, Axis Bank, IndusInd Bank, Asian Paints, ICICI Bank and HDFC.

On the other hand, Bajaj Auto, ITC, NTPC, UltraTech Cement and Reliance Industries were among the gainers.

In the previous session, the BSE barometer closed at 34,868.98, down 561.45 points, or 1.58%, and the broader Nifty tumbled 165.70 points, or 1.58%, to end at 10,305.30.

On a net basis, foreign institutional investors bought equities worth ₹1,766.90 crore on Wednesday, provisional exchange data showed.

According to traders, expiry of June futures and options (F&O) contracts and border tension with China has added volatility to the market.

Further, rising number of COVID-19 cases in the world is offsetting the optimism over reopening of economies, spooking equity investors globally, they said.

Bourses in Japan and Seoul were trading with losses, while those in Shanghai and Hong Kong were closed for public holidays.

Stock exchanges on Wall Street tanked over 2% in overnight session.

Meanwhile, international oil benchmark Brent crude futures fell 0.47% to USD 40.12 per barrel.

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Printable version | Jul 10, 2020 2:11:24 PM | https://www.thehindu.com/business/markets/sensex-falls-over-300-points-in-early-trade-ahead-of-futures-and-options-expiry/article31911529.ece

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