Sensex, Nifty tumble in early trade due to foreign fund outflows, weak Asian sentiment

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India's main indexes--Nifty and Sensex--fell in early trade on Monday, weighed down by foreign money outflows and bad mood in Asian markets, with Japan's Nikkei index down over 5 per cent. The BSE Sensex slid 464.22 points to 85,107.63, while the NSE Nifty dropped 133.85 points to 26,045.10. The reductions were led by major equities like ICICI Bank, Reliance Industries, Tech Mahindra, and Axis Bank, reported PTI.

According to the report, Tata Steel, JSW Steel, NTPC, and Hindustan Unilever were among the winners.

In Asia, markets in Seoul and Tokyo fell, but Shanghai and Hong Kong rose, with the Hang Seng index soaring considerably in September on optimism of economic revival following Chinese stimulus measures, the report stated.

Reportedly, the Foreign Institutional Investors (FIIs) sold Rs 1,209.10 crore in shares on Friday, increasing to market pressure. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, predicted that the Indian market would enter a consolidation period in the near future, noting the strong performance of Chinese companies.

"The market is likely to move into a consolidation phase in the near term. One significant factor that is influencing foreign portfolios is the outperformance of the Chinese stocks which is reflected in the massive surge in the Hang Seng index by around 18 per cent in September. This surge has been triggered by hopes of a revival in the Chinese economy in response to the monetary and fiscal stimulus announced by the Chinese authorities," said V K Vijayakumar.

Global oil prices also shifted, with Brent crude increasing 0.71 per cent to USD 72.49 per barrel.

On Friday, the Sensex dropped 264.27 points to close at 85,571.85, while the Nifty dipped 37.10 points to 26,178.95. Despite the decline, both indices hit new record highs during the session before retreating, the news agency report stated.

Rupee falls 6 paise to 83.75 against US dollar in early trade

In early trade on Monday, the rupee fell 6 paise to 83.75 against the US dollar, owing to weak equity market sentiment and foreign investment outflows. Forex traders claimed an increase in crude oil prices and a strong dollar against key international rivals due to increased demand from importers at the end of the month weighed on the local currency. Investors also displayed restrained activity as they awaited clues from domestic manufacturing PMI (Purchasing Manager's Index) statistics, which are expected to be announced this week.

With PTI inputs