Equity benchmark Sensex plunged over 500 points in early trade on Friday, tracking losses in index majors HDFC twins, ICICI Bank and Infosys amid sustained foreign fund outflow and a weak trend in global markets.
The 30-share Sensex was trading 500.67 points or 0.85 per cent lower at 58,625.69. Similarly, the Nifty declined 150.40 points or 0.85 per cent to 17,467.75.
Maruti was the top loser in the Sensex pack, shedding around 2 per cent, followed by HDFC Bank, Bajaj Finserv, ICICI Bank, Bharti Airtel and HDFC.
On the other hand, PowerGrid, NTPC, Bajaj Auto, M&M and Dr Reddy's were among the gainers.
In the previous session, the 30-share index ended 286.91 points or 0.48 per cent lower at 59,126.36, and Nifty declined 93.15 points or 0.53 per cent to 17,618.15.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 2,225.60 crore on Thursday, as per exchange data.
"The risk-off in equity markets has gathered momentum with sharp cuts in the mother market of the US. The Dow and S&P 500 are now more than 5 per cent off from their record highs. Markets, globally, have turned weak," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further noted that there are indications of a correction in India too. The leader of this rally, IT, is showing signs of exhaustion. When the leader turns weak, the resilience of the market will be tested. Sustained FII selling is another negative signal.
Elsewhere in Asia, bourses in Tokyo and Seoul were trading in the red in mid-session deals. Shanghai and Hong Kong markets were closed for a holiday.
Equities on Wall Street too ended with significant losses in the overnight session. Meanwhile, international oil benchmark Brent crude fell 0.19 per cent to USD 78.16 per barrel.
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