Domestic markets started the new trading week on a negative note as investors stayed on the back foot amid lacklustre global cues.

After a choppy session, the S&P BSE Sensex ended 470.40 points or 0.96 per cent lower at 48,564.27 while the broader NSE Nifty tumbled 152.40 points or 1.06 per cent to 14,281.30.

A sharp drop in the rupee further sapped risk appetite, though gains in market heavyweights RIL and HDFC Bank cushioned the fall.

Laggards were led by ONGC, slumping 4.59 per cent, followed by Sun Pharma, IndusInd Bank, PowerGrid, Bajaj Finance, Bajaj Finserv, SBI and NTPC.

Out of the 30 constituents, only four ended in green. These include: Reliance Industries, Titan, HDFC Bank and ITC, climbing up to 2.37 per cent.

HDFC Bank spurted 1.15 per cent after the country’s largest private sector lender on Saturday reported a 14.36 per cent jump in consolidated net profit to Rs 8,760 crore for the December quarter, driven by a surge in core income.

Global markets retreated as rising COVID-19 cases clouded optimism over economic recovery, even as Chinese shares rose after positive GDP data.

“Domestic equities witnessed pullback for second consecutive day as weak global cues continued to weigh on investors’ sentiments…While underlying strength of markets remains intact considering rebound in key economic data, sustained growth in corporate earnings in 3Q FY21 with upbeat managements’ commentaries and commencement of vaccination process.

“Additionally, favourable monetary policies of global central bankers, weak dollar and large fiscal stimulus in the US are expected to ensure sustain FPIs flow in domestic equities. However, for the week market is expected to be volatile ahead of some crucial global events. Further, as Union Budget is just two weeks away, rotational trading might be visible in the market,” said Binod Modi, Head – Strategy at Reliance Securities.

BSE metal, utilities, telecom, healthcare, basic materials, auto and power indices lost up to 4.14 per cent, while energy and consumer durables ended higher.

On the broader front, BSE midcap and smallcap plummeted up to 2.01 per cent.

Elsewhere in Asia, bourses in Shanghai and Hong Kong ended in the positive zone after China posted 6.5 per cent GDP growth in the fourth quarter. The Chinese economy expanded 2.3 per cent in the pandemic-ravaged 2020, while almost all other major economies are expected to contract.

Bourses in Seoul and Tokyo closed in the red.

Stock exchanges in Europe were also trading on a negative note in early deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.22 per cent lower at USD 54.98 per barrel.

The rupee dived 21 paise to finish at 73.28 against the US dollar.