The 30-scrip Sensex and broader 50-scrip Nifty extended their losses from the previous session and traded in the red on Wednesday.
At 10.30 a.m., Sensex is down 473.81 points or 0.78% at 60281.05, and the Nifty shed 131.70 points or 0.73% at 17981.30. Asian Paints, Adani Ports and UltraTech Cement are the top losers while Bajaj Finance, Vedanta and Tata Elxsi remained the most active stocks.
Sectorwise, IT and realty are down 0.5-1 percent each while the midcap and smallcap indices are also trading in the red.
Tuesday's Loses continue
On Tuesday, weak global cues along with a rise in global crude oil prices as well as outflow of foreign funds subdued India's key equity indices. Besides, profit-booking after a healthy rise in heavyweights and a run-up in mid and small-cap stocks supported the downtrend.
Initially, the domestic equity market opened higher, but soon ceded its early gains on Tuesday, with Sensex and Nifty settling at 60,754 points and 18,113 points, down 0.9 per cent or 554 points and 1.1 per cent or 195 points from their previous close, respectively.
Globally, Asian share markets turned negative as two-year US Treasury yields topped 1 per cent for the first time in almost two years. Similarly, European markets opened lower with technology underperforming amid concerns about faster tightening from the US Fed and rising yields.
On the domestic front, volumes on the NSE were in line with recent averages. Among sectors, BSE bank index was the only one to end in the positive. Stocks of other sectors such as realty, metals, capital goods, auto and telecom fell.
What experts said
"Advance decline ratio has fallen sharply to below 1:3 suggesting broad-based profit taking," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"The Nifty has formed a bearish engulfing pattern. Hence, unless it crosses the high for January 18 (i.e., 18,351), we could see sell-on-rises scenario. A breach of 18,056-18,081 could lead to further weakness in the Nifty," he added.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services: "Investors continue to monitor the global economic recovery from Covid-19. Markets have witnessed some profit-booking over the last few days and Nifty need to hold above the psychological level of 18,000 to maintain the bullish stance."
Vinod Nair, Head of Research at Geojit Financial Services, said: "Surge in oil prices and FIIs turning net sellers also added volatility in the domestic market. Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries while oil prices rose on supply tension owing to the drone attack in Abu Dhabi on Monday."