Sensex Falls Over 350 Points, Nifty Trades Below 17,600 On Weak Global Cues

The Indian equity benchmarks on Tuesday fell in opening deals, tracking a weak trend in global markets. Asian shares were down as Treasury yields spiked to a three year high ahead of U.S. inflation data which could foreshadow even more aggressive interest rate hikes from the Federal Reserve.

Trends on the Nifty Futures on Singapore Exchange (SGX Nifty) also indicated a gap-down start for the domestic indices.

On the macroeconomic front, traders also eyed the Index of Industrial Production (IIP) and retail inflation data, scheduled to be released later in the day.

The 30-share BSE Sensex tanked 359 points or 0.61 per cent to 58,606 in early trade, while the broader NSE Nifty moved 108 points or 0.61 per cent down to 17,567.

Mid- and small-cap shares were trading on a negative note as Nifty Midcap 100 fell 0.71 per cent and small-cap shares shed 0.40 per cent.

All the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Nifty IT, Nifty Financial Services and Nifty Metal were underperforming the index by falling as much as 0.56 per cent, 0.55 per cent and 1.17 per cent respectively.

On the stock-specific front, Hindalco was the top loser as the stock cracked 3.06 per cent to Rs 558.70. Tata Motors, Coal India, Tata Steel and Wipro were also among the laggards.

The overall market breadth stood weak as 1,141 shares were advancing while 1,231 were declining on BSE.

On the 30-share BSE index, Tata Steel, Wipro, L&T, Bajaj Finserv, M&M, Bajaj Finance, Tech Mahindra and SBI were among the top losers.

In contrast, Maruti, HCL Tech, TCs and Kotak Mahindra Bank were trading in the green.

Sensex had tumbled 483 points or 0.81 per cent to close at 58,965 on Monday, while Nifty had moved 109 points or 0.62 per cent lower to settle at 17,675.