Stock Market: Sensex Recoups Early Losses, Down 260 Point. Nifty Below 16,950 Amid Weak Cues

Stock update: NTPC, IndusInd Bank, HDFC, Axis Bank, Reliance Industries, ITC, HDFC Bank, and Asian Paints were the major losers on the Sensex platform

Sensex and Nifty, the two key equity benchmarks on Wednesday, began trade in the red, with the Sensex tumbling 609 points in early trade amid a weak trend in Asian markets. However, the domestic indices recouped some of the losses in initial trade.

At 10.50 am, the BSE Sensex was down 260 points to 56,846, while the broader NSE Nifty declined 82 points to 16,925.

On the 30-share Sensex platform, NTPC, IndusInd Bank, HDFC, Axis Bank, Reliance Industries, ITC, HDFC Bank, and Asian Paints were the major losers. On the flip side, Sun Pharma, Mahindra & Mahindra, Dr Reddy's and Power Grid were among the winners.

The broader markets were also hovering in the negative territory as Nifty MidCap 100 and Nifty SmallCap 100 indices slipped in the range of 0.6 to 0.7 per cent.

Likewise, all sectors started trade on a bearish tone. Nifty Auto, Nifty Metal, and Nifty Bank indices faced the biggest fall as they declined over 1 per cent each.

In the previous session on Tuesday, the 30-share BSE index had ended 38 points (0.07 per cent) lower at 57,107, while the NSE Nifty shed 8 points (0.05 per cent) to 17,007.

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading sharply lower. The US markets ended on a mixed note on Tuesday.

"FIIs have been deserting local equities in recent sessions and this could also dent market sentiment. The street is now anxiously awaiting the RBI September MPC meet outcome to trickle in on Friday," said Prashanth Tapse - research analyst, senior VP (Research), Mehta Equities Ltd.

The international oil benchmark Brent crude declined 1.25 per cent to $85.19 per barrel.

Foreign institutional investors offloaded shares worth Rs 2,823.96 crore on Tuesday, according to data available with the BSE.

Meanwhile, the rupee depreciated 40 paise to an all-time low of 81.93 against the US dollar in early trade on Wednesday as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit.

At the interbank foreign exchange, the rupee opened at 81.90 against the greenback, then fell to 81.93, registering a fall of 40 paise over its previous closing. On Tuesday, the rupee consolidated in a narrow range and settled 14 paise higher at 81.53 against the dollar.