Stock Market Today: Sensex Dives 1,000 Points; Nifty Around 21,750. HDFC Bank Slips 6%

Stock update: On the 30-share Sensex platform, HDFC Bank was the main loser, down over 6 per cent. Kotak Bank, Tata Steel, Bajaj Finserv, Maruti, ICICI Bank were among the losers

The two key equity benchmarks, Sensex and Nifty, on Wednesday tanked early, mostly by bank stocks and weak trends from Asian markets. At 10.30 am, the BSE Sensex slumped 1029 points to 72,099. On the other hand, the NSE Nifty was trading at 21,745, down 287 points.

On the 30-share Sensex platform, HDFC Bank was the main loser, down over 6 per cent. Kotak Bank, Tata Steel, Bajaj Finserv, Maruti, ICICI Bank were among the losers. On the flip side, TCS, HCLTech, Infosys, TechM, PowerGrid, L&T emerged gainers.

In the broader markets, the BSE Midcap and Smallcap indices also declined up to 0.9 per cent.

Sectorwise, Nifty Bank, Financial, Metal, and Realty indices led losses by falling 1.5-2 per cent, while IT stocks remain steady.

In the previous session on Tuesday, the BSE Sensex dropped 199 points to 73,129. On the other hand, the NSE Nifty50 settled at 22,032, down, 65 points.

"Market is likely to turn slightly weak in the near-term, getting impacted by some negative global and domestic cues. The global negativity will come from the rising bond yields in the US (the 10-year yield is at 4.04 per cent) responding to concerns that the sharp rate cuts expected from the Fed this year may not materialise.Domestically, even though the economy is doing well and corporate earnings are good, all these positives are in the price and the valuations are elevated warranting a correction," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

In Asian markets, Seoul, Shanghai, and Hong Kong were trading lower while Tokyo quoted in the green. The US markets ended in the negative territory on Tuesday.

Global oil benchmark Brent crude declined 0.57 per cent to $77.84 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 656.57 crore on Tuesday, according to exchange data.

Meanwhile, the rupee depreciated 3 paise to 83.15 against the US dollar on Wednesday, tracking a strong greenback against major rivals overseas and massive selling in domestic equity markets. However, inflow of foreign funds in domestic equity markets and softening crude oil prices in the international markets resisted a steep fall in the domestic currency, forex traders said.

At the interbank foreign exchange, the domestic currency opened at 83.13 and slipped further to 83.15 against the dollar, registering a loss of 3 paise from its previous close. On Tuesday, the rupee declined 26 paise to settle at 83.12 against the US dollar.