Sensex tanks over 300 pts; Nifty tests 11,500

Equity benchmark BSE Sensex sank over 300 points in early session on Wednesday, dragged by losses in banking, IT and auto stocks amid negative global cues and foreign fund outflow.

The 30-share index was trading 303.70 points, or 0.78 per cent, lower at 38,793.44 at 0930 hours, while the broader Nifty fell 92.70 points, or 0.80 per cent, to 11,495.50.

In the previous session on Tuesday, the BSE barometer ended with a meagre gain of 7.11 points, or 0.02 per cent, at 39,097.14, while the Nifty settled 12 points, or 0.10 per cent, lower at 11,588.20.

Top laggards in the Sensex pack in early trade included Tata Motors, SBI, HDFC twins, Vedanta, Tata Steel, Kotak Bank, Axis Bank, Maruti, Infosys, ITC and ICICI Bank, shedding up to 3 per cent.

On the other hand, PowerGrid, RIL, NTPC, TCS, HCL Tech, Tech Mahindra and Bharti Airtel rose up to 2 per cent.

According to traders, domestic equities opened on a weak note tracking negative news from global markets.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly lower in their respective late morning sessions after US President Donald Trump put China on notice at the United Nations, declaring that the time of trade "abuses" by Beijing was "over" and calling on the country to protect Hong Kong's "democratic ways of life."

Global market sentiment also turned negative following top US Democrat Nancy Pelosi's announcement of the opening of a formal impeachment inquiry into President Donald Trump, saying he betrayed his oath of office by seeking help from a foreign power to hurt his Democratic rival Joe Biden.

Shares on Wall Street ended in the red on Tuesday.

Meanwhile, domestic investor sentiment was also weighed down after the Asian Development Bank on Wednesday sharply cut India's growth forecast to 6.5 per cent for the current fiscal.

On the currency front, the rupee, meanwhile, depreciated 7 paise against its previous close to 71.08 in early session.

Global oil benchmark Brent crude fell 0.71 per cent to 62.65 per barrel (intra-day).

On Tuesday, foreign portfolio investors sold shares worth a net of Rs 828.49 crore, while domestic institutional investors bought equities worth Rs 472.81 crore, provisional data showed.