Sensex drops over 200 points in early trade; Nifty below 11,900

In the previous session, Sensex ended 31.71 points or 0.08% higher at 40,625.51.

Equity benchmark Sensex dropped over 200 points in early trade on October 14, tracking losses in index-heavyweights HDFC twins, ICICI Bank and ITC amid weak cues from global markets.

The 30-share BSE index was trading 214.94 points or 0.53% lower at 40,410.57, and the broader NSE Nifty fell 77.05 points or 0.65% to 11,857.45.

ONGC was the top loser in the Sensex pack, shedding around 3%, followed by NTPC, PowerGrid, UltraTech Cement, ITC, HDFC Bank, ICICI Bank and HDFC.

On the other hand, Tata Steel, Bharti Airtel, HCL Tech, Asian Paints and Bajaj Auto were among the laggards.

In the previous session, Sensex ended 31.71 points or 0.08% higher at 40,625.51. The broader NSE Nifty inched up 3.55 points or 0.03% to 11,934.50.

Exchange data showed that foreign institutional investors bought equities worth ₹832.14 crore on a net basis on October 13.

Asian equities followed U.S. Indices which ended lower as investors’ sentiment was hit after select drug-makers faced setbacks in vaccine trials of COVID-19, said Arjun Mahajan, Head – Institutional Business at Reliance Securities.

Bourses in Shanghai, Hong Kong and Seoul were trading on a negative note in mid-session deals, while Tokyo was in the positive territory.

On the domestic front, strong 2Q numbers from Wipro and expectations of better numbers from Infosys may continue to keep IT stocks in focus.

Further, BFSI stocks may remain on edge ahead of the Supreme Court hearing on interest waiver, which was adjourned on October 13, Mr. Mahajan said.

Meanwhile, international oil benchmark Brent crude was trading 0.28% lower at $42.33 per barrel.

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