Sensex tumbles over 470 points in early trade tracking weak global trends
MUMBAI: The Sensex was trading 470.59 points lower at 58,493.98 in early trade. The Nifty declined 137.7 points to 17,537.25.
From the 30-share pack, Tata Steel, State Bank of India, Bajaj Finserv, IndusInd Bank, Larsen & Toubro, Tech Mahindra and Wipro were among the early laggards.
In contrast, Maruti Suzuki, HDFC and Kotak Mahindra Bank were the only gainers.
"Market will continue to be choppy in the near-term, pulled up and down by positive and negative news. The near-term headwind continues to be the rising US bond yields which have crossed 2.8 per cent for the 10-year and outflows from equity.
"The tech-heavy NASDAQ has turned distinctly weak and this has led to some profit booking in Indian IT stocks too. But IT is likely to do well as TCS results indicate robust deal wins and order flows," according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
TCS quoted flat at Rs 3,685.10, lower by 0.31 per cent after declaring its earnings post trading hours on Monday.
The country's largest software services firm Tata Consultancy Services on Monday opened the fourth-quarter earnings season with a stellar set of numbers, crossing the Rs 50,000-crore revenue mark for the first time and recording 7.4 per cent year-on-year growth in net profit to Rs 9,926 crore.
"US stock markets ended sharply lower on Monday as investors started the holiday-shortened week in a risk-off mood, as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data.
"Asian markets are trading on a negative note as investors continue monitoring developments surrounding the COVID situation in mainland China," said Mohit Nigam, Head - PMS, Hem Securities.
On Monday, the Sensex tanked 482.61 points or 0.81 per cent to settle at 58,964.57. The Nifty declined by 109.40 points or 0.62 per cent to finish at 17,674.95.
In Asia, markets in Hong Kong, Seoul, Shanghai, and Tokyo were trading lower in mid-session deals.
Stocks in the US also ended lower on Monday.
International oil benchmark Brent crude jumped 2 per cent to USD 100.45 per barrel.
Foreign institutional investors continued to offload shares worth Rs 1,145.24 crore on Monday, according to exchange data.