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Stock Market Update: Sensex Falls 300 Points, Nifty Dips Below 23,400
Stock Market Update: Benchmark indices were trading higher in the pre-opening session.
Amid persistent foreign fund outflows, selling pressure in IT stocks, and negative cues from the US markets, equity benchmark indices faced a decline in early trading on Monday.
In the initial trading session, the BSE Sensex saw a drop of 156.72 points, reaching 77,423.59. Simultaneously, the NSE Nifty also experienced a decrease of 64.25 points, settling at 23,468.45.
The primary underperformers among the 30-stock Sensex group included Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, NTPC, Axis Bank, Tata Motors, and IndusInd Bank.
Among the gainers were HDFC Bank, Tata Steel, Bajaj Finance, and Asian Paints.
The Indian rupee bounced back from its recent low, gaining 8 paise to reach 84.38 against the US dollar in the initial trading session on Monday. This increase occurred even in the face of a robust US dollar and continuous foreign fund outflows.
So far this month, foreign investors have withdrawn Rs 22,420 crore from the Indian equity market due to elevated domestic stock valuations, a shift in allocations towards China, and the uptrend of the US dollar along with Treasury yields.
FPI Outflows Continue Amid Market Volatility, Sensex and Nifty Decline
In 2024, Foreign Portfolio Investors (FPIs) have witnessed an outflow of Rs 15,827 crore due to this recent sell-off.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed concerns about the market situation despite Nifty’s 10.4% correction from its peak. He highlighted the lack of a lasting recovery due to continuous FII selling, widespread earnings downgrades projected for most stocks in FY25, and the lingering impact of the Trump trade turmoil.
Seoul, Shanghai, and Hong Kong saw gains in Asian markets, whereas Tokyo experienced a decline in trading.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, mentioned that the combination of feeble cues from Wall Street and the increasing US bond yields is contributing to the overall uneasiness.
Brent crude, the worldwide oil benchmark, saw a 0.51% increase, reaching USD 71.40 per barrel.
On Thursday, the Sensex closed at 77,580.31, down by 110.64 points or 0.14%. Similarly, the Nifty settled at 23,532.70, marking a decrease of 26.35 points or 0.11%.
Nifty GIFT
Anticipated through the trends exhibited on GIFT Nifty, a promising commencement was foreseen for the overall market as it displayed a rise of 78 points equivalent to 0.33%. The proximity of Nifty futures to the 23,515 level hinted at a positive outlook prevailing prior to the market’s initiation.
During the pre-market period, the major stock indices were showing gains.
The Sensex witnessed an increase of 283 points, equivalent to a rise of 0.37%, reaching 77,864, while the Nifty also climbed by 70.9 points, marking a 0.3% increase to settle at 23,603.60.
Sensex Extends Losing Streak as FIIs Sell and Inflation Weighs on Markets
In a volatile trading session on Thursday, the benchmark Sensex fell by 110 points, extending its losing streak to three consecutive sessions. The decline stemmed from sustained selling by foreign institutional investors (FIIs), underwhelming quarterly results, and high inflation rates.
In a rather uneventful trading session, the Sensex, comprising 30 stocks, closed at 77,580.31, recording a decline of 110.64 points or 0.14%. Despite an initial positive trend, the index faltered as the day progressed, primarily driven by heightened selling pressure. At one point, it even slipped by 266.14 points or 0.34% to touch 77,424.81.
The NSE Nifty index experienced a decline of 26.35 points or 0.11%, concluding at 23,532.70. This marked the sixth consecutive day of losses for the index.
Among the constituents of the 30-stock Sensex index, Hindustan Unilever, NTPC, Nestle, IndusInd Bank, Power Grid, Adani Ports, Tata Motors, and Bajaj Finserv showed significant underperformance.
Gainers in the market included Reliance Industries, Kotak Mahindra Bank, Tech Mahindra, Mahindra & Mahindra, and HDFC Bank.
FIIs Sell Rs 2,502 Crore in Indian Equities; Inflation and Sectoral Losses Weigh on Markets
According to data from the exchange, on Wednesday, Foreign Institutional Investors (FIIs) sold equities amounting to Rs 2,502.58 crore, whereas Domestic Institutional Investors (DIIs) purchased shares worth Rs 6,145.24 crore.
According to data released by the government on Thursday, wholesale price inflation reached a peak of 2.36 per cent in October, marking a four-month high. The increase was driven by higher prices of food items, particularly vegetables, as well as manufactured goods.
In October, retail inflation climbed to a 6.21 percent, surpassing the Reserve Bank’s upper tolerance limit, primarily driven by the increase in food prices, reaching a peak not seen in the last 14 months.
The smallcap index on the Bombay Stock Exchange (BSE) rose by 0.83%, while the midcap index increased by 0.41%.
The utilities sector saw a decrease of 0.88 percent, followed by oil & gas at 0.48 percent, power at 0.37 percent, services at 0.09 percent, metal at 0.07 percent, and consumer durables at 0.05 percent in terms of sectoral indices.
There was a 1.11% surge in realty, followed by BSE consumer discretionary at 0.81%, telecommunication at 0.64%, auto at 0.60%, and commodities at 0.33%.
Seoul closed higher, contrasting with Tokyo, Shanghai, and Hong Kong which all saw declines in Asian markets.
Brent crude, the global oil benchmark, saw a slight decrease of 0.06%, settling at USD 72.24 per barrel.
The Sensex plummeted by 984.23 points, equivalent to a 1.25% decrease, closing at 77,690.95 on Wednesday. Meanwhile, the Nifty recorded a significant drop of 324.40 points or 1.36%, ending at 23,559.05, marking its fifth consecutive day of decline.
