The benchmark indices opened in red on Monday dragged down by weak global cues. Both Sensex and Nifty declined over 1% in early trade dented by selling pressure across several sectors.
The 30-share BSE Sensex tanked 929 points to 73,315 points while the 50-share NSE Nifty fell 216 points to 22,303 points. Majority of sectoral indices traded with cuts led by metals, capital goods and telecom.
Factors like ongoing geopolitical tensions in the Middle East, disappointing US inflation data and foreign fund outflows weighed on investor sentiment. US inflation rising more than estimates reaffirmed more aggressive policy tightening by Fed going forward.
Among stocks, Tata Motors, SBI, Tata Steel and Power Grid were top drags on Sensex. On the other hand, HCL Tech and Nestle managed to trade in green offering some support.
Broader markets also joined in the downtrend with BSE midcap and smallcap indices down over 1% each. Going forward, developments around inflation data from major economies and geopolitical updates will be key factors influencing market trajectory in the near term.
