The 30-scrip Sensitive Index (Sensex) on Wednesday opened on a negative note during the morning session of the trade. It opened at 59,296.54 and touched a high of 59,374.98 and a low of 59,189.24.
The Sensex is trading at 59,252.24 down by 415.36 points or 0.70 per cent from its Tuesday's close at 59,667.60. The broader 50-scrip Nifty at National Stock Exchange (NSE) also opened on a lower note at 17,657.95 after closing at 17,748.60 points. The Nifty is trading at 17,624.40 in the morning.
Stocks plunge in last session
India's key equity indices ended on Tuesday's trade session in the red on the back of profit booking along with mixed global cues, higher crude oil prices and US Fed tapering fears. Globally, stocks in Asia-Pacific mostly declined after various firms downgraded China's GDP forecasts.
Furthermore, European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China's economy weighing on investor sentiment. A rally in Brent crude futures above $80 per barrel continued to support energy stocks.
Sector wise, power, oil and gas and metal indices gained the most while realty, IT and telecom indices fell the most. Consequently, S&P BSE Sensex closed at 59,667.60 points, lower by 410.28 points or 0.68 per cent from its previous close.
Similarly, NSE Nifty50 edged lower. It fell to 17,748.60 points, lower by 106.50 points or 0.60 per cent from its previous close. "Nifty regained some of the morning losses on bottom fishing," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Earlier stocks came under selling pressure due to a combination of negatives including rising US yields, power shortage in China and its effect on the global supply chain, and rising inflation across the globe."
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Equity market opened positive but could not sustain at higher levels and witnessed profit booking. However, it made smart recovery towards the fag end of the session, recouping over half of the losses."
"Global markets witnessed weakness as investors continued to remain cautious over the inconclusive German election along with Chinese property group Evergrande's ongoing debt crisis and eyed the potential impact of a widening power shortage in China."
