Sensex, Nifty drop on weak global cues

Key indices dropped in early trade on weak global stocks. The Nifty slipped below 17,650 level in early trade. At 9:23 IST, the barometer index, the S&P BSE Sensex, was down 416.88 points or 0.7% at 59,250.82. The Nifty 50 index fell 108.7 points or 0.61% at 17,639. Global stocks declined on concerns about rising crude oil prices, debt crisis in China's giant Evergrande and a swift rise in US bond yields.

In broader market, the S&P BSE Mid-Cap index was down 0.29% while the S&P BSE Small-Cap index rose 0.38%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1063 shares rose and 1227 shares fell. A total of 132 shares were unchanged.

Stocks in Spotlight:

HCL Technologies was up 0.48%. The IT company joined the AWS Service Delivery Program and become an AWS Contact Center Intelligence Partner.

Bharti Airtel fell 0.22%. CRISIL upgraded long-term rating on bank loan facilities of Rs 20,000 crore to AA+/Stable from AA/Stable. The rating action reflects continued improvement in Bharti Airtel's operating metrics resulting in healthy financial risk profile.

Godrej Properties rose 0.97%. The real estate developer announced that it has entered into an agreement to redevelop a land parcel in the upscale neighbourhood of Wadala, Mumbai.

Lupin rose 1.3% after the drug company announced the launch of Droxidopa Capsules, 100 mg, 200 mg, and 300 mg, having received an approval from the United States Food and Drug Administration (US FDA). The product is manufactured at Lupin's facility in Nagpur.

Global markets:

Asian stocks are trading lower on Wednesday following an overnight tumble on Wall Street and bond yields spiked on concerns about inflation.

U.S. stocks fell sharply on Tuesday, with tech names dragging down the broader markets as Treasury yields traded near three-month highs and lawmakers in Washington continued their budget stalemate.

Also weighing on sentiment was a budget showdown in Washington. Senate Republicans blocked a House-passed bill Monday that would have funded the government into December and suspended the debt ceiling until December of 2022.

Congress must approve government funding by Friday to avoid a shutdown, and Treasury Secretary Janet Yellen warned Congress in a letter on Tuesday that lawmakers need to raise the debt limit by October 18 to avoid a government default. President Biden's massive infrastructure plan also faces an uncertain future.

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