Equity benchmark Sensex dropped over 200 points in early trade on Friday tracking losses in index majors Infosys, HDFC Bank and TCS amid weak cues from global markets. The 30-share BSE index was trading 246.16 points or 0.50 per cent lower at 49,338.
Similarly, the broader NSE Nifty fell 67.65 points or 0.46 per cent to 14,527.95 in opening deals. Profit-booking at higher levels is keeping benchmark indices volatile, traders said.
UltraTech Cement was the top loser in the Sensex pack, shedding around 2 per cent, followed by Tech Mahindra, Infosys, Asian Paints, IndusInd Bank, Dr Reddy's, HCL Tech and TCS. On the other hand, Bharti Airtel, NTPC, Titan, Nestle India and ONGC were among the gainers.
In the previous session, Sensex ended at its new lifetime high of 49,584.16, up 91.84 points or 0.19 per cent, and Nifty rose 30.75 points or 0.21 per cent to finish at a record 14,595.60. Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 1,076.62 crore on Thursday, as per exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, domestic equities do not look to be encouraging at the moment. "While the underlying strength of the market remains intact, it appears to be a bit tiring from the last couple of days and may see some amount of pullback in coming days. "However, announcement of higher fiscal stimulus in the US and soft stance of global central bankers about their monetary policies along with a weak dollar will continue to attract FPIs to Indian equities," he said.
US markets ended with modest correction in the final hour of trade ahead of the announcement of the coronavirus relief plan by President-elect Joe Biden. Elsewhere in Asia, bourses in Shanghai, Seoul and Tokyo were in the red, while Hong Kong was trading in the positive zone.
Meanwhile, the global oil benchmark Brent crude was trading 0.32 per cent lower at USD 56.24 per barrel.