Nifty drops 122.45 points to 24,008.65 amidst weak macroeconomic data

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The benchmark indices, Sensex and Nifty, started the week on a negative note on Monday, showing a decline in early trade. This drop followed the release of disappointing macroeconomic data and weak trends in major stocks such as Reliance Industries, HDFC Bank, and Tata Consultancy Services. Foreign fund outflows also added pressure on market sentiment.

At the start of the trading session, the BSE Sensex tanked 493.84 points, reaching 79,308.95, while the NSE Nifty fell by 122.45 points to settle at 24,008.65. Among the 30 stocks that make up the Sensex, notable losers included IndusInd Bank, HDFC Bank, Larsen & Toubro, Tata Consultancy Services, Reliance Industries, Bajaj Finance, NTPC, and Hindustan Unilever. On the other hand, a few stocks like Maruti, UltraTech Cement, Adani Ports, and Tata Motors showed some resilience with gains.

The downturn in the market comes after India's economic growth slowed to a near two-year low of 5.4 per cent in the July-September quarter of this fiscal. The slowdown in the manufacturing and mining sectors, coupled with weak consumption, has contributed to the underwhelming performance. However, India remains the fastest-growing large economy, according to data released on Friday. The lower-than-expected growth numbers have placed added strain on investor sentiment.

Despite the weak data, market experts suggest that the impact of the GDP slowdown is likely to be contained. "The Q2 GDP shocker of 5.4 per cent will weigh on markets, but the impact is unlikely to be big since part of the declining growth was factored in by the market after the disappointing Q2 results," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Foreign Institutional Investors (FIIs) have been active sellers, offloading equities worth Rs 4,383.55 crore on Friday, further dampening the market mood.

Looking at global trends, Asian markets exhibited mixed performances, with Seoul trading lower while Tokyo, Shanghai, and Hong Kong posted gains. Meanwhile, the US markets ended on a positive note on Friday, which provided some optimism to investors globally.

The global oil benchmark, Brent crude, saw a slight rise of 0.56 per cent, reaching USD 72.24 per barrel, which added further volatility to the trading atmosphere.

On the previous trading day, Friday, the Sensex had gained 759.05 points or 0.96 per cent, closing at 79,802.79, while the Nifty rose by 216.95 points or 0.91 per cent to settle at 24,131.10.

PTI reports indicate that investor focus is likely to remain on the broader economic trends and foreign investment flows, which will be crucial in determining the market's direction in the coming weeks.

(With inputs from PTI)