Sensex drops more than 150 points; bank and auto stocks in a slump

Mumbai: Domestic equity benchmark BSE Sensex dropped over 150 points in early session on Monday, weighed down by losses in banking, auto and IT stocks amid unabated foreign fund outflow.

The 30-share index was trading 147.20 points, or 0.40 per cent, lower at 36,834.57 at 0930 hours, while the broader Nifty rose 31 points, or 0.28 per cent, to 10,915.20.

In the previous session on Friday, the BSE barometer ended 337.35 points, or 0.92 per cent, higher at 36,981.77. Similarly, the broader NSE Nifty spurted 98.30 points, or 0.91 per cent, to finish at 10,946.20.

Top losers in the Sensex pack included Tata Motors, Maruti, Tata Steel, HCL Tech, IndusInd Bank, Vedanta, Bajaj Auto, Hero MotoCorp, HDFC duo, NTPC and Axis Bank, shedding up to 2.40 per cent.

On the other hand, Sun Pharma, HUL, Bharti Airtel, L&T, RIL, Bajaj Finance and ITC rose up to 1.66 per cent.

According to experts, despite positive cues from other global markets, domestic equities reeled under pressure amid continued foreign fund outflow.

Selling by foreign portfolio investors (FPIs) continued over the past week. Given the sustained slowdown, experts fear that Q2FY20 earnings numbers could also be weaker than expected, in which case there would be further downward adjustment for the markets.

On Friday, FPIs sold shares worth a net of Rs 957.05 crore, while domestic institutional investors purchased shares worth Rs 1,207.20 crore, provisional data showed.

Elsewhere in Asia, bourses in Shanghai, Japan and Korea were trading in the green in their respective late morning sessions, while that in Hong Kong was in the red.

The rupee, meanwhile, was traded flat against its previous close at 71.72 in early session.

Global oil benchmark Brent crude surged 0.96 per cent to 62.14 per barrel.