SENSEX drops over 950 points, NIFTY50 index below 24,750; here are key factors dragging markets

The Indian equity benchmarks moved sharply lower on Tuesday, May 13, a day after staging their biggest single-day rally in four years in the previous session as investors flocked to profit booking. The SENSEX fell as much as 961 points while the NIFTY50 index touched an intraday low of 24,675.60. Profit booking amid a surge in crude oil prices in international markets led to a fall in equities.

As of 10:56 am, the SENSEX was down 756 points, or 0.92%, at 81,673, and the NIFTY50 index was trading 202 points, or 0.81%, lower at 24,723 levels.

In Monday's session, investor sentiment got a major boost as India and Pakistan on Saturday, May 10, reached an understanding to stop all firings and military actions on land, air, and sea, with immediate effect.

In a media briefing close to midnight, India's Foreign Secretary Vikram Misri called upon Pakistan to take 'appropriate steps' to address the violations and deal with the situation with 'seriousness and responsibility'.

Meanwhile, on Tuesday, oil prices rose about 1.5% to settle at a two-week high on Monday, after the US and China agreed to temporarily slash tariffs, raising hopes of an end to the trade war between the world's two biggest economies.

Brent crude futures rose $1.05, or 1.6%, to settle at $64.96 a barrel. US West Texas Intermediate (WTI) crude gained 93 cents, or 1.5%, to settle at $61.95, according to the news agency Reuters.

Back home, selling pressure was broad-based, as most of the sector gauges compiled by the National Stock Exchange were trading lower, led by the NIFTY IT index's over 1% fall. NIFTY Realty, Private Bank, Metal, FMCG, Auto, Bank and Financial Services indices also fell between 0.3% and 0.75%.

On the other hand, pharma and PSU bank shares were witnessing strong buying interest.

Broader markets were outperforming their larger peers as the NIFTY Midcap 100 index rose 0.36% and the NIFTY Smallcap 100 index advanced 0.69%.

Index heavyweights like HDFC Bank, Infosys, ICICI Bank, Reliance Industries, Bharti Airtel, Kotak Mahindra Bank and Tata Consultancy Services were among the top drags on the SENSEX. They collectively wiped out over 550 points from the SENSEX, data from BSE showed.

As many as 39 shares in the NIFTY50 index were trading lower, led by Infosys' 2.96% fall. Eternal (-2.41%), HCL Technologies (-2.23%), Hindalco (-2.23%), Power Grid (-2.23%) and Trent (-1.89%) were also among the losers.

On the flipside, Bharat Electronics, Dr Reddy's Labs, Jio Financial Services, Cipla, Apollo Hospitals and Coal India were among the gainers.

The overall market breadth was positive as 2,433 shares were advancing while 1,087 were declining on the BSE.