Markets break 5-day rally; Sensex tumbles 709 points on weak global trends

The scheduled U.S. Federal Reserve policy meeting is among the factors keeping markets on edge

Equity benchmarks Sensex and Nifty halted their five-day rally on Tuesday and settled deep in the red, mirroring weak global markets, with decline in index heavyweights Reliance Industries, Infosys and HDFC Bank.

Despite opening with gains of over 200 points, the 30-share Sensex turned highly volatile and tumbled 709.17 points or 1.26% to close at 55,776.85. During the day, the benchmark index plunged 1,067.07 points or 1.88% to 55,418.95.

The broader NSE Nifty also declined 208.30 points or 1.23% to close at 16,663.

From the 30-share Sensex pack, Tata Steel, Tech Mahindra, Kotak Mahindra Bank, Infosys, Reliance Industries Limited, Axis Bank and HCL Tech were the major drags.

On the other hand, Mahindra & Mahindra, Maruti Suzuki, Nestle India, Asian Paints and Titan were among the gainers.

Bourses in Hong Kong and Shanghai settled sharply lower amid concerns over fresh virus lockdowns. Tokyo was marginally higher.

Exchanges in Europe were largely trading lower in the afternoon trade.