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Indian equity benchmarks saw a decline in early trade on Monday, following continued outflows by foreign portfolio investors (FPIs), selling in IT stocks, and negative cues from the US markets.
The BSE Sensex fell by 156.72 points, settling at 77,423.59, while the NSE Nifty dropped 64.25 points to reach 23,468.45 in early trade.
Among the key stocks pulling down the market were Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services (TCS), NTPC, Axis Bank, Tata Motors, and IndusInd Bank. On the other hand, HDFC Bank, Tata Steel, Bajaj Finance, and Asian Paints were among the few stocks that saw gains.
According to exchange data, FPIs sold equities worth â¹1,849.87 crore on Thursday. The ongoing sell-off has contributed to a net outflow of â¹22,420 crore from the Indian equity market so far in November. Several factors, including high domestic stock valuations, increasing allocations to China, and the rising US dollar alongside the US Treasury yields, are believed to be influencing these outflows.
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As per PTI, the outflow trend from FPIs has been consistent in 2024, with a total of â¹15,827 crore withdrawn from Indian equities this year.
Despite the Nifty having corrected by 10.4 per cent from its peak, there are no clear signs of a sustained recovery, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that the market is being weighed down by persistent FII selling, earnings downgrades for most stocks for FY25, and the ongoing repercussions of the "Trump trade."
In the broader Asian market, Seoul, Shanghai, and Hong Kong reported gains, while Tokyo was trading lower. The US markets ended lower on Friday, further dampening investor sentiment.
"Rising US bond yields and weak leads from Wall Street have only added to market anxiety," noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Meanwhile, global oil prices edged up, with Brent crude rising by 0.51 per cent to USD 71.40 a barrel.
Earlier last week, on Thursday, the Sensex had declined by 110.64 points or 0.14 per cent to close at 77,580.31, while the Nifty had dropped 26.35 points or 0.11 per cent to end at 23,532.70. The markets had remained closed on Friday due to the Guru Nanak Jayanti holiday.
(With inputs from PTI)
