Markets fall in early trade amid weak trend in U.S. equities

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| Photo Credit: Reuters

The domestic equity benchmark indices fell in early trade on May 5 in-line with the weak trend in the U.S. markets and the decline in index major HDFC twins.

The 30-share BSE Sensex tanked 586.15 points to 61,163.10 in initial trade. The NSE Nifty declined 150.9 points to 18,104.90.

Among the Sensex firms, HDFC Bank, HDFC, Tata Steel, Asian Paints, Bajaj Finance, NTPC, IndusInd Bank, HCL Technologies, Infosys, Wipro, Bharti Airtel and Bajaj Finserv were the major laggards.

Larsen & Toubro, ICICI Bank, Axis Bank, Nestle, State Bank of India and UltraTech Cement were among the gainers. In Asian markets, Shanghai traded lower, while Hong Kong quoted in the green.

“The mother market U.S. has turned weak and the S&P 500 has slipped for the fourth day on renewed fears of stress in the U.S. banking system,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The U.S. markets had ended lower on May 4.

“The risk-averse market environment in overnight trades at Wall Street is indicating a choppy session for key local benchmark indices.”

“Despite the negative sentiment, several positive catalysts such as oil price crashing to $69 a barrel, renewed FII buying, and a possible pause by the U.S. Fed in rate hike could aid the sentiment,” Prashanth Tapse, Senior V-P (Research), Mehta Equities Limited said in his pre-market opening quote.

Foreign Institutional Investors (FIIs) were net buyers on May 4 also as they bought equities worth ₹1,414.73 crore, according to exchange data. Meanwhile, global oil benchmark Brent crude climbed 0.66% to $72.98 per barrel.

The BSE benchmark had climbed 555.95 points or 0.91% to settle at 61,749.25 on Thursday. The Nifty had advanced 165.95 points or 0.92% to end at 18,255.80.