Markets: Sensex drops after flat opening, Nifty trades lower

MUMBAI: Market indices BSE Sensex and Nifty dipped marginally after opening flat on mixed global cues on Tuesday morning. 

After opening at 36,313, the Sensex dipped to 6.16 points or 0.02% at 36298.86. Nifty was down 14.00 points or 0.13%, trading at 10953.40. 

Baring pharmaceutical firms, all the sectoral indices traded in the red.

The top gainers were ONGC, HDFC (+2%), Yes Bank (+1%). Top losers were Indiabulls HF (-4%), Bajaj Fin (-3%), BPCL (-2%). 

On Monday evening, BSE Sensex tanked nearly 537 points to end at over two-month low of 36,305.02 and the Nifty crashed below the 11,000-mark, extending their slide for the fifth straight session after heavy losses in banking and auto stocks.

The 30-share Sensex hit a low of 36,216.95 before settling at 36,305.02, down by 536.58 points or 1.46 per cent -- the biggest single-session fall since February 6 when it had lost 561.22 points. This is the weakest closing since July 11 when it settled at 36,265.93. The index had lost 1,249.04 points in the previous four sessions.

Reports of liquidity concerns following the default in repayment of loans by diversified IL&FS group spooked investors even as losses in global markets on reports that China had called off planned trade talks with the US in the wake of a new round of duties weighed on the market sentiment.

The Reserve Bank of India (RBI) and market regulator Sebi said on Sunday that they were closely monitoring the developments in the financial sector and were ready to take "appropriate actions" to calm the jittery investors.

With agency inputs