Sensex drops over 100 points in early trade; Nifty below 11,750

MUMBAI: Equity benchmark Sensex dropped over 100 points in early trade on Tuesday, tracking losses in index majors Reliance Industries, ICICI Bank and Infosys amid negative cues from global markets.

After opening with mild gains, the 30-share BSE index made a U-turn and fell 123.22 points or 0.31 per cent to 40,022.28. Similarly, the broader NSE Nifty slipped 29.65 points or 0.25 per cent to 11,738.10.

IndusInd Bank was the top laggard in the Sensex pack, shedding around 3 per cent, followed by ICICI Bank, ONGC, SBI, HDFC, Infosys and Reliance Industries.

On the other hand, Kotak Bank rallied around 6 per cent, followed by NTPC, Nestle India, Asian Paints, Tech Mahindra and M&M.

In the previous session, Sensex settled 540 points or 1.33 per cent lower at 40,145.50, while Nifty tumbled 162.60 points or 1.36 per cent to 11,767.75. Exchange data showed that foreign institutional investors sold equities worth Rs 119.42 crore on a net basis on Monday.

According to Arjun Yash Mahajan Head Institutional Business at Reliance Securities, Indian markets are expected to remain volatile ahead of presidential election in the USA and derivatives expiry week.

While initial trade set up in India looks to be better than other Asian markets, weak global cues may result in selling pressure towards the later part of the day, he said.

US equities witnessed steep correction mainly on emerging concerns about possible slowdown in economic activities led by resurgence of coronavirus infections and fading signs of fiscal stimulus before presidential election, he said.

Additionally, restrictions imposed on economic activities in European countries like Spain and Italy also dampened sentiments.

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

Meanwhile, international oil benchmark Brent crude was trading 0.54 per cent higher at USD 41.03 per barrel.