Benchmark indices fell in trade as Asian cues were weak following a rally in bond yields in the US. U.S. Federal Reserve Chair Jerome Powell said Thursday that the economic reopening could "create some upward pressure on prices." This saw bond yields moving up and stocks lower across the US and Asia trending lower. Bond yields and stock prices tend to move in the opposite direction.
The Sensex was down around 300 points, while the Nifty dipped 116 points in early trade. Banking stocks were amongst the biggest losers in trade with the Bank Nifty down almost 1.5 per cent.
ICICI Bank, IndusInd Bank and Axis Bank were amongst the top losers from the banking space. Among the gainers in trade were some of the oil exploration and oil marketing companies including the likes of ONGC, BPCL, GAIL and Indian Oil Corporation.
Shares in Wipro fell after the company said that it will acquire London-headquartered Capco in a $1.45 billion deal. Shilpa Medicare saw its share price gain after the drug maker entered the women intimate hygiene product segment with the launch of a cleansing spray.
Meanwhile, gold continued to fall and was down to a 9-month low, as comments by the US Federal Chairman on inflation boosted the dollar and bond yields.