Stock Market: Sensex Sheds 205 Points, Nifty Trades Below 17,450 Amid Volatility; IT Drags

Stock update: Tech Mahindra, Infosys, HCL Technologies, Wipro, Tata Consultancy Services, IndusInd Bank, Dr Reddy's Lab, and HDFC Bank were the major losers in early trade on the BSE

Sensex and Nifty, the two key equity benchmarks, on Tuesday began trade on a weak note amid a sell-off in global stock markets. However, the domestic indices later turned volatile. 

At 10.45 am, the BSE Sensex declined 205 points to 58,569, while the broader NSE Nifty fell 48 points to 17,443. Both the benchmark indices turned volatile and oscillated between gains and losses. 

On the 30-share Sensex platform, Tech Mahindra, Infosys, HCL Technologies, Wipro, Tata Consultancy Services, IndusInd Bank, Dr Reddy's Lab, and HDFC Bank were the major losers in early trade. On the flip side, Mahindra & Mahindra, Bajaj Finserv, Tata Steel, and UltraTech Cement were trading higher.

In the broader markets, the Nifty Midcap 100 and Nifty Smallcap 100, however, advanced up to 0.9 per cent.

All sectors opened in the negative zone with Nifty IT and Nifty Metal indices battered heavily in trade.

In Asia, markets in Seoul, Tokyo and Hong Kong were trading lower, while Shanghai quoted in the green in mid-session deals. The Wall Street had ended sharply lower on Monday. EUROSTOXX 50 futures and FTSE futures were both off a fraction after sliding overnight, as European and British manufacturing surveys due later on Tuesday were expected to highlight the damage being done to activity, with Germany seen deeper in contractionary territory.

In the previous session on Monday, the BSE benchmark had tumbled 872 points (1.46 per cent) to settle at 58,773, while the Nifty declined 267 points (1.51 per cent) to finish at 17,490.

The international oil benchmark Brent crude was trading 0.79 per cent higher at $97.22 per barrel.

Foreign Institutional Investors (FIIs) offloaded shares worth Rs 453.77 crore on Monday, according to exchange data. 

Meanwhile, the rupee depreciated 4 paise to 79.88 against the US dollar in opening trade on Tuesday tracking a strong American currency and risk aversion in domestic markets.

At the interbank foreign exchange, the rupee opened at 79.85 against the dollar, then fell to 79.88, registering a decline of 4 paise over the last close. On Monday, the rupee closed at 79.84 against the dollar.