Sensex Drops Over 300 Points, Nifty Below 15,650

The equity benchmarks continued their losing streak as they extended their previous day losses on Wednesday, July 28.

At 9:40 AM, the BSE Sensex was trading lower by 296.23 points at 52,282.53 points, and the Nifty-50 was at 15,661.25 points. At 10:20 AM it was down by 367 points. 

There was also some cautiousness among investors after the IMF yesterday trimmed India's GDP forecast for FY22 at 9.5 per cent from 12.5 per cent earlier, experts added.

In the 30-share pack Sensex, 24 shares were trading lower, while only six shares advanced. Dr. Reddys Labs was the top loser in the pack as it continued to decline over two per cent for the second consecutive day. HDFC Twins and Nestle also declined over a per cent each in the morning deals.

However, on the flipside, IndusInd Bank jumped over two per cent in the morning trade. The stock was in major focus after the company released its earnings for the June quarter. The bank's net profit almost doubled in the quarter at Rs 1,016.11 crore against Rs 510.39 crore in June 2020.

Other companies like Maruti Suzuki, Nestle, ABB, Happiest Minds Technologies, Central Bank of India were in major focus as the companies are scheduled to announce their results later today for the quarter ended June 30.

A major concern for the Indian markets is the sustained outflows from the Foreign Investors in the current month. The FIIs have pulled out more than Rs 16,000 crore so far from the Indian equity markets in the current month. On Tuesday, the FIIs net sold shares worth Rs 1,459.08 crore in the Indian equity market, while the DIIs purchased shares worth Rs 729.96 crore, as per the provisional data available on the exchange.

Moving ahead, investors are likely to take cues from the global peers and quarter earnings at home. So far the earnings session has been moderate to positive, said experts.