Sensex drops over 200 pts; ICICI Bank, TCS top laggards

According to traders, global investor sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points, but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.

Mumbai (Maharashtra): Domestic equity benchmark BSE Sensex dropped over 200 points in early session on Thursday, dragged by losses in index heavyweights Yes Bank, TCS, and Infosys, amid unabated foreign fund outflow and mixed global cues.

The 30-share index was trading 206.33 points, or 0.56 per cent, lower at 36,357.55 at 0930 hours, while the broader Nifty slipped 64.65 points, or 0.60 per cent, to 10,776.

In the previous session, the BSE barometer ended 82.79 points or 0.23 per cent, higher at 36,563.88.

Similarly, the broader NSE Nifty gained 23.05 points, or 0.21 per cent, to finish at 10,840.65.

Top losers in the Sensex pack in early trade included Yes Bank, ICICI Bank, IndusInd Bank, Tata Steel, Tech Mahindra, NTPC, SBI, HCL Tech, TCS, L&T, Infosys and Axis Bank, shedding up to 4.21 per cent.

On the other hand, Tata Motors, Maruti, Asian Paints, HDFC Bank, HUL and Bharti Airtel rose up to 1.40 per cent.

According to traders, global investor sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points, but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a mixed note in their respective late morning sessions.

On Wall Street too, bourses ended on a tepid note after Fed policy outcome on Wednesday.

Sustained foreign fund outflow too weighed on market sentiment here, traders said.

On Wednesday, foreign portfolio investor sold shares worth a net of Rs 959.09 crore, while domestic institutional investors bought equities worth Rs 780.45 crore, provisional data showed.

The rupee, meanwhile, was trading flat against its previous close at 71.20 in early session.

Global oil benchmark Brent crude rose 0.11 per cent to 63.67 per barrel (intra-day).