Infosys, the top losers in the Sensex pack, fell nearly 2%, followed by ICICI Bank, HUL, Bajaj Auto, Reliance Industries and TCS.
Equity benchmark Sensex fell over 700 points in early trade on Tuesday, with losses in index majors Infosys, ICICI Bank and Reliance Industries amid persistent foreign fund outflows.
After touching a low of 57,718.34 in the opening session, the 30-share index took some losses to trade 264.20 points or 0.45% lower at 58,201.69.
Similarly, Nifty was trading at 17,327.50, down 89.05 points or 0.51%. It touched a low of 17,216.10 in opening deals.
Infosys, the top losers in the Sensex pack, fell nearly 2%, followed by ICICI Bank, HUL, Bajaj Auto, Reliance Industries and TCS.
On the other hand, Tata Steel, PowerGrid, Bajaj Finance and ITC were among the gainers.
In the previous session, the Sensex was down 1,170.12 points or 1.96% at 58,465.89 and the Nifty was down 348.25 points or 1.96% at 17,416.55.
Foreign institutional investors (FIIs) were net sellers in the capital market as they sold shares worth Rs 3,438.76 crore on Monday, according to exchange data.
“Market heavyweight RIL re-evaluates Aramco deal, Paytm’s disastrous inventory, COVID resurgence in parts of Europe, RBI warnings of hiked valuations, foreign brokerages downgrading India and roll back of agricultural laws rock the market VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
This is a much-needed correction that will make the market healthy, he said, adding that Paytm’s failure is a reality check in the primary market and will irrationally deter enthusiastic newbie investors.
While Nifty has corrected 6.4 per cent from peak, Nifty Bank has corrected 12.4 per cent from peak, indicating weakness in the banking sector even though valuations in banking have not been hiked.
“Constant selling by FIIs will keep negative sentiment in the market. The reaction of retail investors to the decline has to be seen.
Elsewhere in Asia, Hong Kong and Seoul were trading with losses in mid-session deals, while Shanghai and Tokyo were positive.
Stock exchanges in the US ended the overnight session largely in the red.
Meanwhile, international oil benchmark Brent crude fell 0.45% to $79.34 a barrel.
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