IT and Banking Shares Drag Sensex, Nifty Lower at Open

Heavy selling in IT and banking stocks pushed Indian benchmark indices lower on Wednesday, extending a losing run that has now lasted seven days. The Sensex and Nifty 50 both traded down as much as one percent, as weak global signals and cautious investors kept buyers on the sidelines.

Rising crude prices, geopolitical tensions and anticipation of the US Federal Reserve's policy decision later in the day kept sentiment subdued. Traders said many participants preferred to wait for clearer direction before taking fresh positions.

The Sensex began trading at 73,253.44, down 345.23 points or 0.46 percent. The Nifty 50 opened at 22,678.00, lower by 71.75 points or 0.32 percent, and the Bank Nifty started at 53,793.25, down 181.65 points or 0.34 percent.

During the day, the Sensex fell to a low of 72,772.48, a drop of 826.19 points or 1.12 percent from its previous close of 73,598.67. The Nifty 50 touched 22,540.70, down 209.05 points or 0.91 percent from 22,749.75.

Midcap and smallcap stocks moved in opposite directions. The Nifty Midcap 100 lost 0.41 percent, while the Nifty Smallcap 100 rose 0.6 percent.

Nifty Auto was the only sectoral index in positive territory, up 0.36 percent. Nifty IT and Nifty FMCG recorded the steepest declines, falling 3.2 percent and 1.63 percent respectively.

Asian peers presented a mixed picture. Shanghai rose 0.87 percent and Shenzhen gained 2.19 percent. Japan's Nikkei added 1.26 percent, Hong Kong's Hang Seng rose 0.38 percent, and South Korea's Kospi jumped 6.2 percent.

US markets closed higher overnight, with the Nasdaq up 1.18 percent, the S&P 500 up 0.6 percent and the Dow Jones up 0.03 percent.

On October 27, foreign institutional investors bought shares worth 4,240 crore rupees, while domestic institutional investors sold shares worth 1,250 crore rupees.