Sensex slides 341 pts, Nifty drops to 19,700 in early trade amid negative global cues

Domestic equities started on a negative note on Friday, with benchmark Sensex tumbling 341 points as negative global cues and concerns over the quarterly financial performance of IT companies hit investor sentiments.

The broader Nifty too declined in early trade while Asian markets fell amid fears of higher interest rates against the backdrop of a marginal rise in the latest US inflation numbers.

Falling more than 341 points or 0.51 per cent, the 30-share BSE Sensex was at 66,067.31 points. A total of 20 companies in the index, including Infosys and Axis Bank, dropped more than 2 per cent.

The scrip of Infosys, whose September quarter results did not meet Street expectations, was trading at ₹1,426.80 apiece.

Meanwhile, ten Sensex companies were in the green.

The 50-share NSE Nifty dropped 84.25 points or 0.43 per cent to 19,709.75 points, with as many as 27 index constituents trading in the negative territory.

Key Asian indices were in the red and Hong Kong’s Hang Seng Index dropped more than 2 per cent.

US and European markets closed in the negative territory on Thursday amid inflation numbers coming in slightly higher than expected in the US. Sensex and Nifty too had declined.

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“Expect gap down opening in the domestic markets after Infosys announced lower than expected FY24 earning guidance and September inflation in the US was marginally above estimates,” Vikas Jain, Senior Analyst at Reliance Securities, said in a pre-market open note.

Rising US 10-year bond yield as well as fall in Asian markets impacted the domestic equities, he added.

Foreign Institutional Investors (FIIs) were net sellers on Thursday as they sold shares worth ₹1,862.57 crore, according to data available with BSE.