Opening Bell: Nifty slips below 17,900, Sensex loses nearly 400 points; banking, financial stocks worst hit

The Indian markets opened negative in line with the trends on SGX Nifty, which was trading 150 points lower around 9 am on Wednesday. The broader Nifty50 slipped below 17,900, while the Sensex edged lower by more than 400 points amid weak global cues and softening oil price. The benchmarks opened at 17,842.75 and 59,815.71 respectively ahead of RBI monetary policy meet later in the day on Wednesday.  

In the broader market, Nifty midcap and small cap indices slipped in the red to trade negative as well.  

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said the market has bounced back smartly from the recent Nifty low of below 16000 to around 18000 level assisted by positive news on the economy, declining crude from the peak of $ 139 and the proposed merger of the HDFC twins.

"Data relating to GST and credit growth indicate smart economic recovery and corporate tax collections for FY 22 indicate earnings momentum. But since valuations are again high there will be selling at higher levels and therefore the market is likely to consolidate around current levels with subdued volatility in the near term," he added. 

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Sectorally, all indices, except pharma, healthcare, oil & gas, metal and media, traded lower in the early trade. The 12-share Nifty Bank declined by more than 400 points in the opening trade as banking and financial services stocks took the maximum beating on Wednesday. 

In the pre-open, the Sensex dropped nearly 400 points as 9 shares advanced and 21 declined on the 30-share index.  

Earlier, Asian share markets slipped on Wednesday as investors faced up to the possibility of aggressive monetary tightening by the U.S. Federal Reserve to fight inflation. 

In the early trade on Wednesday, Japan`s Nikkei shed 1.5%, while South Korean shares fell 0.8% and Australian shares lost 1.2%. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)