Equity benchmark Sensex dropped over 100 points in early trade on Tuesday, tracking losses in index-heavyweights HDFC, Kotak Bank and ICICI Bank despite largely positive trend in global equities and sustained FPI inflow.
The 30-share BSE index was trading 117.77 points or 0.24 per cent lower at 49,151.55.
Similarly, the broader NSE Nifty slipped 20.95 points or 0.14 per cent to 14,463.80 in opening deals.
On the Sensex chart, IndusInd Bank was the top loser, shedding around 2 per cent, followed by Kotak Bank, Titan, Asian Paints, Bajaj Auto, Tech Mahindra and HDFC.
On the other hand, Reliance Industries, L&T, Bharti Airtel, ITC, Bajaj Finserv and TCS were among the gainers.
In the previous session, the Sensex ended 486.81 points or 1 per cent higher at record 49,269.32, and Nifty surged 137.50 points or 0.96 per cent to finish at its fresh lifetime high of 14,484.75.
Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 3,138.90 crore on Monday, as per exchange data.
According to Binod Modi, Head-Strategy at Reliance Securities, domestic equities do not look to be encouraging at the moment. Red flags highlighted in the Reserve Bank of India’s Financial Stability Report about the banking sector do not augur well for the banking index, which may weigh on markets in the near term.
“However, we still believe fundamentals of the market are still intact considering sustained rebound in economic activities and government’s continuous endeavour to bolster economic activities,” he said.
US equities recorded modest correction as profit-booking was visible especially in technology companies. However, he added that investors appeared to remain focused on the possibility of large fiscal stimulus and prospects of economic recovery.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading with gains in mid-session deals, while Seoul was in the red.
Meanwhile, the global oil benchmark Brent crude was trading 0.05 per cent lower at USD 55.63 per barrel.
