Record 4529 Deaths Drive Markets in the Red

India reported a total of 2,67,334 fresh Covid-19 cases in the last 24 hours, the third consecutive day with the number of infections staying below the three-lakh mark, while 4,529 fresh fatalities dragged markets down in early trade.

Equity benchmark Sensex dropped over 150 points in opening trade on Wednesday, tracking losses in index majors Reliance Industries, HDFC Bank and Kotak Bank amid a negative trend in global markets.

The market, however, turned flat in the first half hour of trading. The 30-share BSE index was trading 6.73 points or 0.01 per cent higher at 50,200.06, and the broader NSE Nifty advanced 1.50 points or 0.01 per cent to 15,109.60.

M&M was the top loser in the Sensex pack, shedding around 1 per cent, followed by ONGC, Kotak Bank, ITC, HUL and HDFC Bank. On the other hand, PowerGrid, SBI, UltraTech Cement, Nestle India and NTPC were among the gainers.

In the previous session, Sensex soared 612.60 points or 1.24 per cent to settle at 50,193.33, and Nifty quoted higher by 184.95 points or 1.24 points at 15,108.10.

Binod Modi, Head Strategy at Reliance Securities, said concerns from rising inflationary pressure globally and increasing apprehension among investors about Federal Reserve's soft monetary stance due to sharp rise in CPI inflation may weigh on sentiments.

US equities contracted for second consecutive day as mounting inflationary concerns and weak housing data weighed on investors' sentiments, he noted.

Modi further said that investors will continue to focus on the trajectory of daily caseload and vaccination ramp up in the country in the near term.

"India has been reporting less than 3 lakh daily caseload for the last three days. This will continue to embolden investors.

"It indicates that earlier assumption of daily caseload in second wave peaking-out by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond 1QFY22. This has already aided markets witnessing sharp uptick in the last two trading days," he said.

India saw a record 4,529 fatalities due to coronavirus in a single day pushing the Covid-19 death toll to 2,83,248, while 2.67 lakh fresh cases were recorded, according to the Union Health Ministry data updated on Wednesday.

India's Covid-19 tally had crossed the 20-lakh mark on August 7, 30 lakh on August 23, 40 lakh on September 5 and 50 lakh on September 16. It went past 60 lakh on September 28, 70 lakh on October 11, crossed 80 lakh on October 29, 90 lakh on November 20 and surpassed the one-crore mark on December 19. India crossed the grim milestone of 2 crore on May 4.

The health ministry stressed that more than 70 per cent of the deaths occurred due to comorbidities.

Meanwhile, the Indian rupee inched higher by 8 paise to 72.97 against the US dollar in early trade on Wednesday amid a muted trend in the domestic equity market.

At the interbank foreign exchange, the domestic unit opened on a flat note at 73.02 against the dollar, then inched higher and touched 72.97, registering a rise of 8 paise over its previous close.

Elsewhere in Asia, bourses in Shanghai and Tokyo were trading on a negative note in mid-session deals.

Equities on Wall Street ended with losses in overnight trade.