Sensex tumbles 254 pts; HDFC twins weigh

Mumbai: Equity benchmark Sensex dropped 254 points on Wednesday following losses in index majors HDFC twins, Reliance Industries and ICICI Bank.

The 30-share BSE benchmark closed 254.33 points or 0.43 per cent lower at 59,413.27. Similarly, the NSE Nifty declined 37.30 points or 0.21 per cent to 17,711.30.

HDFC was the top loser in the Sensex pack, shedding nearly 2 per cent, followed by Kotak Bank, Asian Paints, UltraTech Cement, HDFC Bank, HUL and Tech Mahindra.

On the other hand, NTPC, PowerGrid, Sun Pharma, SBI and Titan were among the gainers.

Domestic equities witnessed brisk recovery from intra-day lows, led by strong rebound in metal, pharma, and PSU banks, said Binod Modi, Head – Strategy at Reliance Securities.

According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the surge in the benchmark US 10-year yield to 1.546 per cent spooked global equity markets, with US benchmarks witnessing cuts of above 2 per cent in S&P 500 and Nasdaq in the previous session.

“It is too early to conclude that this is a trend reversal for markets. But at the present elevated valuations, the risk is high. Investors may watch for consolidation in markets,” he noted.

Elsewhere in Asia, bourses in Shanghai, Tokyo and Seoul ended with heavy losses, while Hong Kong turned positive.

Stock exchanges in Europe were trading on a positive note in mid-session deals.

Meanwhile, international oil benchmark Brent crude slipped 0.57 per cent to USD 77.90 per barrel.