Stock Market: Sensex Drops 200 Points, Nifty Trades Near 18,050 On Weak Cues. IndiGo Jumps 6 Per Cent

Stock update: On the 30-share Sensex platform, Bajaj Finance, TCS, HCL, Reliance, TechM, Axis Bank were trading in the red. Asian Paints, HUL, ITC, Titan, Nestle, Tata Motors were among the winners

The two key equity benchmarks, Sensex and Nifty, on Wednesday began trading with cuts tracking losses in global markets on renewed fears of a banking crisis ahead of US Fed's monetary policy decision later today.

At 10 am, the BSE Sensex, which dropped 270 points in early trade, was trading at 61,158, down 196 points. On the other hand, the NSE Nifty was down 60 points to 18,087.

On the 30-share Sensex platform, Bajaj Finance, TCS, HCL, Reliance, TechM, Axis Bank were trading in the red. On the flip side, Asian Paints, HUL, ITC, Titan, Nestle, Tata Motors were among the winners.

Among specific stocks, IndiGo and SpiceJet gained 6 per cent and 3 per cent, respectively, following the insolvency filing by Wadia-owned Go First, which was driven by a cash crunch due to the grounding of nearly half its 57 aircraft.

In the broader markets, the BSE Midcap and Smallcap indices were nearly flat versus losses in BSE Sensex.

Sectorwise, Nifty IT and PSB indices dropped 1 per cent each. Media and Realty indices were trading in the green.

In the previous session on Tuesday, the BSE Sensex closed at 61,355, up 242 points. On the other hand, the NSE Nifty gained 83 points to 18,148.

In Asian markets, Seoul and Hong Kong traded lower, while Shanghai quoted in the green. The US markets had ended lower on Tuesday.

"Key indices are likely to be under pressure in early trade ahead of the US Fed meeting on interest rate later today. Investors are likely to exercise caution as global equity markets too are trending lower fearing any further rate hike could push key economies into recession and temper growth going ahead," Prashanth Tapse, senior VP (Research), Mehta Equities Ltd said in his pre-market opening quote.

Global oil benchmark Brent crude climbed 0.03 per cent to $75.34 per barrel.

Foreign Institutional Investors (FIIs) were net buyers on Tuesday as they bought equities worth Rs 1,997.35 crore, according to exchange data.

Meanwhile, the rupee gained 12 paise to 81.75 against the US dollar in early trade on Wednesday tracking the weakness of the American currency in the overseas market.

Forex traders said significant foreign fund inflows and crude oil prices below $80 a barrel also supported the local unit. At the interbank foreign exchange, the domestic unit opened at 81.80 against the dollar and then climbed to 81.75, registering a rise of 12 paise over its previous close. On Tuesday, the rupee closed at 81.87 against the US currency.