Market closes near day's low; Sensex drops 470 points

Equity benchmark Sensex dropped over 400 points on Monday tracking losses in index majors Infosys, HDFC and TCS amid a mixed trend in global markets.

At close of today's session, the 30-share BSE index was down 470.40 points or 0.96 per cent lower at 48,564.27

Similarly, the broader NSE Nifty fell 152.40 points or 1.06 per cent to 14,281.30.

ONGC was the top loser in the Sensex pack, shedding nearly 5 per cent, followed by Sun Pharma, IndusInd Bank, PowerGrid, SBI, Bajaj Finance, Maruti, Bajaj Finserv, Axis Bank and Dr Reddy's Lab.

On the other hand, HDFC Bank,  Reliance, HCL Tech and Titan were among the gainers.

In the previous session, Sensex slumped 549.49 points or 1.11 per cent to finish at 49,034.67. The broader NSE Nifty tumbled 161.90 points or 1.11 per cent to 14,433.70.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 971.06 crore on Friday, as per exchange data.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities look to be soft at the moment.

"While underlying strength of markets remains intact considering the rebound in key economic data, sustained growth in corporate earnings in Q3 of FY21 with upbeat management commentaries and commencement of the vaccination process," he said.

Additionally, "favourable monetary policies of global central bankers, weak dollar and large fiscal stimulus in the US are expected to ensure sustained FPI flow in domestic equities," he noted.

Stimulus plan

US markets witnessed high volatility last week especially after the announcement of $1.9 trillion stimulus program by President-elect Joe Biden.

"Sell on news tendency led US indices to register weekly loss of 0.9-1.5 per cent. Further, indications by Biden about reversal of lower tax rates sooner also weighed on investor sentiments," Modi added.

Elsewhere in Asia, bourses in Shanghai and Hong Kong were trading in the positive zone, while Seoul and Tokyo were in the red.

Meanwhile, the global oil benchmark Brent crude was trading 0.93 per cent lower at $ 54.59 per barrel.