Share Market News: Sensex Sheds 540 Points; Nifty Tests 22,700. Banks, Auto, IT Drag

Share market news: The two key equity benchmarks, Sensex and Nifty, plunged sharply on Wednesday morning amid profit-booking by investors ahead of the Lok Sabha poll results. The results of the ongoing general elections will be declared on June 4. At 10.30 am, the BSE Sensex dropped 540 points to 74,631. On the other hand, the NSE Nifty50 was trading at 22,726, down 163 points.

Stock update

On the 30-share Sensex platform, PowerGrid, Sun Pharma, Nestle, ITC were only trading in the green. Axis Bank, ICICI Bank, M&M, UltraCemco, IndusInd Bank, HDFC Bank emerged losers.

In the broader markets, Nifty Midcap rose marginally by 0.01 per cent, while Smallcap advanced 0.34 per cent.

Sectoral update

Sectorwise, buying is seen in Metal, Capital Goods, Telecom, Power, and Media. Auto, Bank, IT, Oil & Gas declined.

In the previous session on Tuesday, the BSE benchmark closed 220 points lower at 75,170, while the NSE Nifty declined 44 points to end at 22,888.

"The nervousness in the market continues with uncertainty regarding the election results," said V K Vijayakumar, chief investment strategist, Geojit Financial Services.

Global market

In Asian markets, Seoul, Tokyo and Hong Kong were quoting lower, while Shanghai traded with gains. US markets ended on a mixed note on Tuesday.

Global oil benchmark Brent crude climbed 0.21 per cent to $84.40 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 65.57 crore on Tuesday, according to exchange data.

On Tuesday, Indian currency pared initial gains to settle 5 paise lower at 83.18 against the US dollar on Tuesday amid a negative trend in domestic equities and some dollar demand from importers. Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices weighed on investor sentiment, while the decline in the US dollar cushioned the downside..

Foreign investors were also net buyers in the equity markets on Tuesday which cushioned the currency from a major fall, dealers said. At the interbank foreign exchange market, the local unit opened at 83.14 and touched an intra-day high of 83.10 and a low of 83.19 later in the day.