The benchmark Sensex lost over 1,000 points during early morning trade as weak global cues on account of negative crude prices and the statemeny by US President Donald Trump that he will suspend immigration affected investor sentiments.
The 30-share barometer touched a low of 30,634.41, shedding 1,014 points compared to yesterday’s close of 31,648.00.
At 9:45 am, the Sensex was trading at 30,837.28, down 810.72 points or 2.56%.
Sensex constituents such as ICICI Bank, Reliance Industries, HDFC, HDFC Bank, Axis Bank, TCS and Maruti Suzuki India contributed the maximum to the losses in the first hour of the trading session.
Overall, more than 1,100 stocks were in the red as against 406 that gained.
The broader Nifty was at 9,019.85, down 242 points or 2.61%. The India VIX index was trading more than 4% higher in the morning session.
“Nifty has witnessed resistance near 9400 levels and corrected, we believe the current correction would extend further to drift near to 8950 levels,” said Vikas Jain, Senior Research Analyst, Reliance Securities.
“Multiple negative news flow from global markets like immigration suspension announced by Mr. Trump, sharp volatility in crude oil prices would put further pressure on markets overall,” he added.
Elsewhere in Asia, both Hang Seng and Nikkei were trading over 2% lower with lost other benchmarks also in the red. The overnight Dow Jones lost 2.44%.
Meanwhile oil futures rebounded on Tuesday after falling below zero for the first time in history. The NYMEX WTI crude contracts were trading around $1.48 per barrel.