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The Indian stock markets witnessed a decline in early trade on Friday, with benchmark indices Sensex and Nifty slipping further amid continuous foreign fund outflows and growing concerns over the US Federal Reserve's recent stance on interest rates.
The 30-share BSE Sensex fell 214.08 points, or 0.27%, to 79,003.97, while the NSE Nifty dropped 63.8 points, or 0.27%, to 23,887.90 in early trading.
Among the 30 blue-chip stocks, Axis Bank, Tech Mahindra, IndusInd Bank, JSW Steel, ITC, Larsen & Toubro, UltraTech Cement, and HDFC Bank were among the worst performers, leading to a dip in the overall market sentiment. On the other hand, stocks such as Titan, NTPC, Bajaj Finance, Bharti Airtel, Tata Consultancy Services, and Maruti showed resilience and recorded gains.
In the broader Asian markets, South Korea's Seoul index opened lower, while the markets in Tokyo, Shanghai, and Hong Kong showed positive movements. US stocks closed mixed on Thursday, reflecting the ongoing volatility in global markets.
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Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 4,224.92 crore on Thursday, according to the latest exchange data. This follows a marked shift in FII strategy, with the net selling for the week amounting to Rs 12,229 crore. The sustained FII outflows have put additional pressure on large-cap stocks, particularly in the financial sector.
"The FII buying seen earlier in December has reversed, with this week's selling weighing heavily on largecaps and financial stocks. However, the negative reaction to the US Federal Reserve's comments is likely to be temporary. A recovery, driven by large-cap stocks, is possible in the near term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, global oil prices saw a decline, with Brent crude dropping 0.69% to USD 72.38 a barrel, contributing to the downward pressure on markets.
On Thursday, the Sensex closed lower by 964.15 points, or 1.20%, at 79,218.05, while the Nifty slipped 247.15 points, or 1.02%, closing below the 24,000 mark at 23,951.70.
The ongoing volatility in the stock market is largely attributed to the uncertainties surrounding the global economic outlook and the Fed's indication of fewer rate cuts next year, which has sparked caution among investors.
(With inputs from PTI)
