Stock Market Continues To Bleed, Sensex Drops Over 200 Points, Nifty Slips Near 21,500

The Nifty Microcap 250 and the Nifty Next 50 were the only exceptions and were trading up by 0.30 per cent and 0.19 per cent respectively.

The two key equity benchmarks, Sensex and Nifty, on Wednesday, began trading following the sentiments of the previous two market sessions. The S&P BSE Sensex fell 271.85 points to touch 71,620.63 in early trade, while the NSE Nifty50 declined 71.35 points to hit 21,594.45.

At 9:35 AM, the Sensex was trading at 71,654.46 at a loss of over 200 points, while the Nifty50 stood at 21,606.95, after slipping over 50 points. 

On the 30-share Sensex platform, Bajaj Finserv, ITC, Hindustan Unilever, Reliance, and UltraTech Cement emerged as the prime gainers. On the downside, JSW Steel, Wipro, Tata Steel, Infosys, and HCL Tech were among those trading in the red. 

In the broader markets, the indices were mostly trading in red. The Nifty Microcap 250 and the Nifty Next 50 were the only exceptions and were trading up by 0.30 per cent and 0.19 per cent respectively. Among the laggards, the Nifty Midcap Select and the Nifty Smallcap 50 indices dipped 0.48 per cent and 0.45 per cent respectively in the morning. 

Among specific stocks on the NSE, Adani Enterprises, the flagship firm of the Adani Group, advanced nearly 6 per cent in the morning, followed by Adani Ports, trading up by over 4 per cent. 

Sectorally, the Nifty IT and Metal indices led the losses and were trading lower by 2.02 per cent and 1.16 per cent respectively. The Nifty FMCG  and Oil & Gas indices remained among the gainers and stood higher by 0.31 per cent and 0.30 per cent respectively, followed by the Nifty Pharma index, trading up by 0.14 per cent.

V K Vijayakumar, chief investment strategist, Geojit Financial Services, noted, "Market has turned highly volatile with profit-booking triggered by high valuations. Even DIIs (Domestic Institutional Investors) who have been consistent buyers are booking profits."

In the previous trading session on Tuesday, the two key equity benchmarks, Sensex and Nifty, broke off last week’s rally and closed trading in red. The S&P BSE Sensex breached the 72,000 mark and dropped nearly 400 points to close at 71,892.48, while the NSE Nifty50 slipped 81.65 points to settle below the 21,700 mark at 21,660.25. 

The domestic rupee appreciated 4 paise to 83.28 against the US dollar in early trade on Wednesday, helped by easing crude oil prices. However, forex traders noted that the Indian currency remianed under pressure amidst a negative trend in domestic equities. At the interbank foreign exchange, the domestic unit opened at 83.30 and touched 83.28 in initial trade against the American dollar. A day earlier, the domestic unit closed at 83.32 against the greenback.

Brent oil prices dipped to $75.88 per barrel. Foreign institutional investors (FIIs) became net buyers in the equity market on Tuesday as they bought shares worth Rs 1,602.16 crore, exchange data revealed.