Sensex, Nifty drops in early trade; IT stocks drag

Equity benchmark Sensex dropped over 100 points in early trade on September 28, tracking losses in Infosys, TCS and HDFC Bank amid a largely weak trend in global markets.

The 30-share Sensex was trading 124.32 points or 0.21% lower at 59,953.56. Similarly, the Nifty declined 21.40 points or 0.12% to 17,833.70.

HCL Tech was the top loser in the Sensex pack, shedding over 2%, followed by Infosys, Tech Mahindra, TCS and Asian Paints.

On the other hand, NTPC, UltraTech Cement, PowerGrid and SBI were among the gainers.

In the previous session, the 30-share index ended 29.41 points or 0.05% higher at its all-time closing peak of 60,077.88, and Nifty advanced 1.90 points or 0.01% to record 17,855.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital market as they offloaded shares worth ₹594.63 crore on September 27, as per exchange data.

"Benchmark indices outperformed global markets in recent week as favourable Federal Open Market Committee [FOMC] meeting outcome and sustained recovery in key economic indicators bolstered investors' confidence. However, investors remain on tenterhook with regards to progress on Evergrande," said Binod Modi Head-Strategy at Reliance Securities.

US equities ended mostly lower in overnight sessions as selling pressure in the rate-sensitive technology sector led to contraction in S&P 500 and Nasdaq.

Elsewhere in Asia, bourses in Shanghai and Hong Kong were trading with gains in mid-session deals, while Tokyo and Seoul were in the red.