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Sensex drops more than 550 points amid weak global signals, shrewd trades below 16,950

Sensex and Nifty started on a lower note today.

New Delhi:

Indian equity benchmarks traded lower on Monday as trade opened amid weak global signals. Investors turned cautious as worries about slowing economic growth in China, the world’s biggest oil importer, outweighed fears of potential supply disruptions due to an impending European Union ban. (EU) on Russian crude. Additionally, an expected rate hike by the US Federal Reserve this week hampered sentiment.

Nifty futures trends on the Singapore Stock Exchange (SGX Nifty) indicated an early gap down for national indices.

The 30-stock BSE Sensex was down 577 points or 1.01% at 56,484 in early trading, while the broader NSE Nifty was down 177 points or 1.04% to trade at 16,925.

Mid and small cap stocks were negative, with the Nifty Midcap 100 falling 0.45% and small caps 0.69%.

14 of 15 sector gauges – compiled by the National Stock Exchange – were trading in the red. Nifty Consumer Durables and Nifty IT underperformed the index falling as much as 1.43% and 1.08%, respectively.

On the stock-specific front, Titan was the big loser as the stock fell 2.53% to Rs 2,395.95. Bajaj Auto, Asian Paints, Eicher Motors and Sun Pharma were also among the losers.

Overall market breadth remained weak as 919 stocks rose while 1,825 fell on BSE.

On the BSE 30-stock index, Titan, Asian Paints, Sun Pharma, Bajaj Finance, Bajaj Finserv, Maruti, Infosys, Kotak Mahindra Bank, L&T, Tech Mahindra and ICICI Bank were among the main laggards.

On the other hand, IndusInd Bank, NTPC and Axis Bank evolved in the green.

Indian markets will be closed on Tuesday due to Eid (Id-Ul-Fitr).

Sensex had plunged 460.19 points or 0.80% to close at 57,061 on Friday, while Nifty was down 142.50 points or 0.83% to close at 17,103.