Sensex, Nifty decline on fading hopes of stimulus package

Mumbai: Market benchmark BSE Sensex declined by 345 points in early session on Friday due to heavy losses in financial, FMCG and auto stocks amid fading hopes of a stimulus package for slowdown-hit sectors.

The 30-share index dropped 345.55 points or 0.95 per cent to 36,127.38 in early session with 19 of its constituents trading in the red. The broader NSE Nifty dropped 94.30 points or 0.88 per cent to 10,647.05 points, dragged down by losses in ICICI Bank, Cipla and auto major Maruti.

FMCG, auto, banking and financial sector stocks came under heavy selling pressure after government officials virtually ruled out a stimulus package to arrest a slowdown and boost growth.

Among Sensex stocks, ICICI fell the most by 2.62 per cent. HDFC Bank, Kotak Bank, Axis Bank, SBI and IndusInd Bank also dropped up to 1.7 per cent. Maruti lost 2.27 per cent, ITC 1.83 per cent, Bajaj Finance 2.17 per cent and Reliance Industries by 1.40 per cent.

The rupee breached the 72 mark in early trade which also hit the market sentiment.

Meanwhile, Asian markets were trading firm on a cautious note ahead of US Fed Chair Jerome Powell key address which is expected to throw a light of the central bank's plan on the rate cut.