Sensex, Nifty slide in early trade on negative global cues

MUMBAI: Equity benchmark indices Sensex and Nifty declined in early trade on Thursday as rising concerns over the health of the global banking system and uncertainty over rate hike trajectory in Europe and the US continued to rattle investors.

The 30-share BSE Sensex tumbled 205.24 points or 0.36 per cent to 57,350.66 points while the broader NSE Nifty dropped 78.45 points or 0.46 per cent to 16,893.70 points.

In the Sensex pack, 20 companies declined and among the Nifty constituents, 30 scrips were in the red. The key indices have declined for five straight trading sessions. Asian markets, including Hong Kong and Japan, fell on Thursday amid negative global cues.

On Wednesday, European stocks suffered substantial losses in the wake of concerns over the financial health of Swiss lender Credit Suisse.

The European Central Bank's decision on interest rate later on Thursday will also be closely watched by investors amid inflation remaining high.

Deepak Jasani, Head of Retail Research at HDFC Securities, said major US stock indices finished mostly lower on Wednesday after the slump in shares of Credit Suisse stoked fears of broader banking sector issues following the fallout of US banks Silicon Valley Bank and Signature Bank in the past week.

Swiss authorities on Wednesday said that Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks and that Switzerland's central bank will provide additional funds if required to the lender.

Foreign Institutional Investors (FIIs) have remained net sellers in the Indian equity market for the past five consecutive trading sessions.

On Wednesday, they offloaded shares worth Rs 1,271.25 crore, BSE data showed.