Sensex Sheds Over 400 Points; HDFC Bank, ICICI Bank Top Losers

US stocks ended sharply lower overnight as economic uncertainties caused a spike in U.S benchmark bond yields and Asia-Pacific stocks lost ground in early trading, tracking the decline on Wall Street

Sensex Sheds Over 400 Points; HDFC Bank, ICICI Bank Top Losers

Auto and private banking stocks are seeing selling pressure in early trading

The domestic stock indices have shed almost a per cent in early trading on the back of negative global cues. US stocks ended sharply lower overnight as economic uncertainties caused a spike in U.S benchmark bond yields and Asia-Pacific stocks lost ground in early trading, tracking the decline on Wall Street. As of 9:18 am, the BSE Sensex is trading at 59,234.75, lower by 409 points or 0.68 per cent and the NSE Nifty is at 17,638.95, down 108.95 points or 0.60 per cent. In the broader markets, the BSE Midcap and BSE Smallcap indices are down 0.3 per cent and 0.4 per cent respectively.

The benchmark 10-year rates have gained 25 basis points in five sessions to 1.5513 per cent, hitting their highest since mid-June.

Asia-Pacific stocks declined across the board on Wednesday morning, with the exception of the Jakartha index, following an overnight decline on Wall Street. The Nikkei 225 slipped 2.41 per cent, while the Topix index dropped 2.5 per cent and Kospi declined 1.8 per cent.

Wall Street stocks ended sharply lower on Tuesday in a broad sell-off driven by rising US Treasury yields, deepening concerns over persistent inflation, and contentious debt ceiling negotiations in Washington. The Dow Jones fell 1.63 per cent to 34,299.99, S&P 500 lost 2.04 per cent at 4,352.63 and Nasdaq Composite dropped 2.83 per cent to 14,546.68.

On the stock-specific front, auto, private banking stocks and information technology stocks are seeing selling pressure in early trading. ICICI Bank, HDFC Bank and IndusInd Bank are the top three losers in the Sensex pack, shedding 1-2 per cent each. In the auto space, Bajaj Auto and Maruti Suzuki have lost around a per cent each on the BSE. And in the IT space, Tech Mahindra and Infosys are trading weak with losses of around a per cent each.

On the other hand, Dr Reddy's, Tata Steel and Sun Pharma have gained around a per cent each on the BSE.

The BSE market breadth is weak. Out of 2,635 stocks traded on the BSE, there are 1,209 advancing shares as against 1,280 declines.