Sensex sinks over 300 points; metal, auto stocks drag

Mumbai: Domestic equity benchmark BSE Sensex dropped over 300 points in early trade on Friday tracking losses in metal, auto, IT and banking stocks.

The 30-share index pared some opening losses to trade 248.25 points or 0.67 per cent lower at 37,063.28 at 0930 hours; and the broader Nifty too fell 67.45 points or 0.61 per cent to 10,961.95 in morning trade.

In the previous session on Wednesday, the 30-share index settled 353.37 points or 0.96 per cent higher at 37,311.53. The broader NSE Nifty reclaimed the 11,000-mark, jumping 103.55 points or 0.95 per cent to close at 11,029.40.

The stock market was closed on Thursday on account of Independence Day.

Top losers in the Sensex pack in early trade included Vedanta, HCL Tech, TCS, Bharti Airtel, Tata Steel, Tata Motors, TechM, SBI and Infosys, shedding up to 2.63 per cent.

While, Yes Bank, ONGC, ITC, Bajaj Finance and HUL rose up to 1.37 per cent.

According to experts, rising concerns of an economic slowdown, weak earnings and global trade volatility has been weighing on investor sentiment.

On Thursday, Prime Minister Narendra Modi comprehensively reviewed the state of the economy with Finance Minister Nirmala Sitharaman as his government scrambled for solutions to tackle a fast-spreading slowdown in various sectors, which is eroding wealth and causing job losses.

India's economic growth has slowed to 6.8 per cent in 2018-19 - the slowest pace since 2014-15, consumer confidence is waning and foreign direct investment has plateaued. International trade and currency war is further aggravating the problem.

Meanwhile, foreign portfolio investors bought shares worth a net of Rs 1,614.63 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 1,619.82 crore, provisional data showed.

Elsewhere in Asia, Hang Seng, Shanghai Composite Index and Nikkei were trading on a positive note in their respective late morning sessions, while Kospi slipped in the red.

Bourses on Wall Street ended on a mixed note on Thursday.

On the currency front, the rupee depreciated 16 paise versus the dollar against its previous close to trade at 71.43 in early session.

Brent crude futures, the global oil benchmark, rose 0.86 per cent to trade at 58.73 per barrel.