Sensex drops over 100 pts in early trade; IT stocks drag

Equity benchmark Sensex dropped over 100 points in early trade on Tuesday, tracking losses in Infosys, TCS and HDFC Bank amid a largely weak trend in global markets.

The 30-share Sensex was trading 124.32 points or 0.21 per cent lower at 59,953.56. Similarly, the Nifty declined 21.40 points or 0.12 per cent to 17,833.70. HCL Tech was the top loser in the Sensex pack, shedding over 2 per cent, followed by Infosys, Tech Mahindra, TCS and Asian Paints.

On the other hand, NTPC, UltraTech Cement, PowerGrid and SBI were among the gainers. In the previous session, the 30-share index ended 29.41 points or 0.05 per cent higher at its all-time closing peak of 60,077.88, and Nifty advanced 1.90 points or 0.01 per cent to record 17,855.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 594.63 crore on Monday, as per exchange data. "Benchmark indices outperformed global markets in recent week as favourable Federal Open Market Committee (FOMC) meeting outcome and sustained recovery in key economic indicators bolstered investors' confidence.

However, investors remain on tenterhook with regards to progress on Evergrande," said Binod Modi Head-Strategy at Reliance Securities. US equities ended mostly lower in overnight sessions as selling pressure in the rate-sensitive technology sector led to contraction in S&P 500 and Nasdaq.

Elsewhere in Asia, bourses in Shanghai and Hong Kong were trading with gains in mid-session deals, while Tokyo and Seoul were in the red. Meanwhile, international oil benchmark Brent crude rose 0.91 per cent to USD 79.44 per barrel.