Stock Market: Sensex Plunges 500 Points; Nifty Trades Below 19,400. Auto, Power Worst Hit

Stock update: On the 30-share Sensex platform, NTPC, M&M, Maruti, IndusInd Bank, Tata Steel, UltraCemco emerged losers. On the flip side, Nestle, HUL, and Asian Paints were the only three gainers

In the broader market, the BSE Midcap and Smallcap indices also declined up to 0.6 per cent. ( Image Source :Getty )

The two key equity benchmarks, Sensex and Nifty, on Wednesday extended their losing streak in early trade as surging US yields continued to dent global market sentiment. At 9.35 am, the BSE Sensex dropped 505 points to 65,007. On the other hand, the NSE Nifty was trading at 19,380, down 149 points.

On the 30-share Sensex platform, NTPC, M&M, Maruti, IndusInd Bank, Tata Steel, UltraCemco emerged losers. On the flip side, Nestle, HUL, and Asian Paints were the only three gainers. Among specific stocks, Nestle surged 4 per cent as the company plans to consider a stock-split on October 19.

In the broader market, the BSE Midcap and Smallcap indices also declined up to 0.6 per cent.

Sectorally, all the indices are trading in the red with auto, power, metal, and realty went down 1 per cent each.

In the previous session on Tuesday, the S&P BSE Sensex declined 316 points to settle at 65,512, while the NSE Nifty50 closed at 19,529, down 110 points.

"Global cues are negative for markets in the near-term. The sustained rise in the US bond yields, which has triggered continuous FII selling, is showing no signs of abating. The dollar index is now clearly above 107 and the US 10-year bond yield is at 4.83 per cent. This means FIIs will continue to sell and the bulls will be on the back foot," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In Asian markets, Seoul, Tokyo, and Hong Kong were trading lower while Shanghai quoted in the positive territory. The US markets ended with over 1 per cent fall on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,034.14 crore on Tuesday, according to exchange data.

Global oil benchmark Brent crude declined 0.10 per cent to $90.83 a barrel.

Meanwhile, the rupee depreciated 4 paise to 83.24 against the US dollar in early trade on Wednesday, as the strength of the American currency and a weak trend in domestic equities exerted pressure on the local unit. Forex traders said sustained foreign fund outflows further dented investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.22, then touched 83.24, registering a decline of 4 paise over its last close. On Tuesday, the rupee had settled at 83.20 against the dollar.