Equity benchmark Sensex dropped over 600 points on Tuesday, dragged by losses in financial stocks amid selloff in global markets.
The 30-share BSE Sensex was trading 697.81 points, or 1.90 per cent, lower at 35,995.88. In similar movement, the NSE Nifty 50 fell 200 points, or 1.85 per cent, to 10,602.70.
Shares of the HDFC duo led the fall in the indices, shedding up to 3 per cent, after HDFC Bank said it has launched a probe into its auto lending practices following allegations against the conduct of a long-time executive who retired on March 31 this year.
IndusInd Bank, Bajaj Finserv, Axis Bank, Bajaj Finance, Maruti and SBI were among the other laggards.
On the other hand, HCL Tech, Infosys, Nestle India, UltraTech Cement and ITC were the gainers. In the previous session, the BSE barometer ended 99.36 points, or 0.27 per cent, higher at 36,693.69, and the Nifty closed 34.65 points, or 1.15 per cent, up at 10,802.70.
Foreign institutional investors were net buyers in the capital market on Monday, purchasing equities worth Rs221.76 crore, provisional exchange data showed.
"In NIfty50, decline is led by HDFC which is down by 2.90 per cent, Indusind Bank by 4.30 per cent. HDFC is planing to raise Rs45,000 crore by issuing debt securities and will seek for approval of shareholders in upcoming AGM on July 30. Among the sectoral indices, Nifty Bank declined 2.53 per cent, Auto is down by 1.93 per cent, Metals by 2.30 per cent," said Arun Leslie John, Chief Market Analyst, Century Financial.
According to traders, besides stock-specific actions, negative cues from global markets amid escalating US-China tension and rising Covid-19 cases dampened investor sentiment here.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with significant losses. Stock exchanges on Wall Street also ended on a negative note.
Asserting that the "Chinese predatory world view" had no place in the 21st century, the US, in a major policy decision on Monday, categorically rejected the territorial claims made by Beijing in South China Sea, stating that it has no legal grounds to unilaterally impose its will on the region.
Following the sharp decline in global market yesterday and concern over rising daily Covid-19 cases Nifty50 and BSE Sensex both are down by 1.25 per cent for the day.
Meanwhile, the Indian Rupee fell today by 0.20 per cent to 75.44 per US dollar to quote at Dh20.55 after appreciating in last session to 75.2950 amid weak global market and rising concern over corona virus cases globally rises the demand of safe haven.
"RBI turned net purchaser in May as it bought $4.363 billion of the greenback on net basis, according to central bank data. Which is also a reason for weak INR. For the day 75.20 and 75.98 could work as support and resistance," added John.
