Stock markets decline in early trade, dragged by HDFC Bank

MUMBAI: Benchmark indices Sensex and Nifty traded lower in early deals on Thursday as selling in blue-chip HDFC Bank and persistent geopolitical uncertainty weighed on markets' sentiment.

Key points

• Further into the trade, the BSE benchmark traded 108.80 points down at 77, 368.68, and the Nifty quoted 26.15 points lower at 24, 189.70.
• While Hong Kong's Hang Seng index traded lower, in Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index quoted higher.
• The 30-share BSE Sensex dipped 45.17 points to 77, 422.70 in early trade.
• Among the 30 Sensex firms, HCL Tech, HDFC Bank, NTPC, Mahindra & Mahindra, Power Grid and Tata Consultancy Services were the major laggards.
• Kotak Mahindra Bank, Tech Mahindra, Bharat Electronics and Bajaj Finance were among the winners.

In practice, the 30-share BSE Sensex dipped 45.17 points to 77, 422.70 in early trade. The 50-share NSE Nifty skidded 6.40 points to 24, 202.45.

"Geopolitical tensions continue to weigh on markets, " V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, remarked.

Brent crude, the global oil benchmark, traded 0.44 per cent lower at USD 87.45 per barrel.

While Hong Kong's Hang Seng index traded lower, in Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index quoted higher. US markets concluded in negative territory on Wednesday.

Foreign Institutional Investors (FIIs) purchased equities worth Rs 502.63 crore on Wednesday, according to exchange data.

On Wednesday, the Sensex declined 183.15 points, or 0.24 per cent, to settle at 77, 472.94.The Nifty was down 126.80 points, or 0.52 per cent, to end at 24, 207.75.

Taken together, the developments around stock markets decline in early trade, dragged by HDFC Bank point to a situation that is still moving, and the coming days should bring more clarity.