Sensex witnesses steep fall by over 500 points after opening in red

India's key equity indices - S&P BSE Sensex and NSE Nifty50 - traded in the red during Friday's early morning trade session.

Accordingly, the 30-scrip sensitive index traded at 58,601.78 points around 9.55 a.m., down 524.58 points or 0.89 per cent. The Sensex opened at 58,889.77 points from its previous close of 59,126.36 points.

Besides, the NSE Nifty50 traded at 17,464.95 points, down by 153.20 points or 0.87 per cent.  It opened at 17,531.90 points from its previous close of 17,618.15 points.

Last sessions witnessed steep fall on profit booking

Profit booking along with investors' caution ahead of domestic macro-economic data pulled India's key equity indices lower for the third consecutive session on Thursday.

Besides, weak global cues dented investors' sentiments while the monthly F&O expiry created some pressure on the market. Sector wise, realty and consumer durables indices rose the most whereas metals, telecom, auto, banks and IT fell the most.

Consequently, S&P BSE Sensex closed at 59,126.36 points, lower by 286.91 points or 0.48 per cent from its previous close. Similarly, NSE Nifty50 edged lower. It fell to 17,618.15 points, lower by 93.15 points or 0.53 per cent from its previous close.

"Nifty has fallen for three consecutive sessions - the longest streak in almost two months," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"While the Nifty has not fallen with deep cuts and recoveries have been witnessed post intra-day selloffs, the fact that the Nifty closed lower for three straight sessions is a bit unnerving."

Markets ended in red

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Indian markets opened flat and was range-bound in the initial half but gave in to profit booking in the latter half to finally end in red."

"Sectorially, it was a mixed bag, with buying seen in the realty, pharma, power, consumer durables, and PSU banking stocks, while selling was seen in the auto, bank, IT, metal. Broader market continued to outperform benchmark indices."

In addition, Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian market opened on a flat note and slipped in the later half tracking weak global cues and fall in heavyweights."

"Worries over the US debt ceiling crisis and uptick in bond yield triggered further consolidation. The domestic market also got vigilant ahead of the release of August's core sector output data."