Sensex, Nifty Edge Lower; IT, Banking Shares Among Top Drags

Infosys, ICICI Bank, TCS, HCL Technologies. State Bank of India and Bajaj Finance were among the top drags on the Sensex.

Sensex, Nifty Edge Lower; IT, Banking Shares Among Top Drags

The Indian equity benchmarks edged lower on Tuesday mirroring losses in global markets with the Sensex falling as much as 172 points and the Nifty 50 index touching an intraday low of 17,640. Asian shares suffered heavy losses early on Tuesday following a broad sell-off on Wall Street, as markets fretted about the impact of multi-year high oil prices at a time when supply chain disruptions are already putting pressure on economic activity.

As of 9:21 am, the Sensex was down 101 points at 59,198 and Nifty 50 index slipped 12 points to 17,679.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped as much as 1.3 per cent, falling for a third consecutive session. Japan stocks were down 2.8 per cent, South Korea gave up 2.5 per cent and Australia shed 1 per cent. The drop in markets took MSCI's main benchmark to 619.87, the lowest since November 2020. It has shed more than 5 per cent this year, with Hong Kong and Japanese markets among the big losers.

Overnight, the dollar eased and a gauge of global equity markets fell on Monday as investors worried about the potential for renewed US-China trade tensions, stalled talks in Congress and rising inflation as oil prices surged to multi-year highs.

Back home, ten of 15 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Information Technology index's 0.43 per cent decline. Nifty Bank, Financial Services, PSU Bank, Private Bank, Pharma and Healthcare indices also fell between 0.2-0.4 per cent.

On the other hand, Oil & Gas index surged over 1 per cent on the back of rising crude oil prices.

Mid- and small-cap shares were outperforming their larger peers as Nifty Midcap 100 index advanced 0.2 per cent while the Nifty Smallcap 100 index rose 0.5 per cent.

Cipla was top loser in the Nifty 50 basket of shares, the stock fell nearly 2 per cent to Rs 940. Bajaj Finserv, HCL Technologies, Tech Mahindra, Hindalco, Dr Reddy's Labs, Cun Pharma, Wipro and Tata Consultancy Services also fell between 0.8-1.2 per cent.

On the flipside, ONGC was the top Nifty gainer, the stock rose 5 per cent to Rs 155. Indian Oil, Maruti Suzuki, Bharti Airtel, Coal India, UPL, Power Grid, Bharat Petroleum and Asian Paints were also among the gainers.

The overall market breadth was positive as 1,752 shares were advancing while 849 were declining on the BSE.