The benchmark indices Sensex and Nifty fell in early trading on Thursday, influenced by persistent foreign fund outflows and declines in IT stocks. Key players in the market faced selling pressure, while some stocks like Larsen & Toubro saw gains amidst a generally bearish sentiment.
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- Sensex drops 225.17 points to 79,707.66; Nifty falls 60.85 points to 24,280.
- IT stocks lead declines, while Larsen & Toubro gains over 5% after profit increase.
- FII continue net selling, offloading Rs 4,613.65 crore in shares.
The benchmark equity indices, Sensex and Nifty, opened lower on Thursday as persistent foreign fund outflows and selling in information technology (IT) stocks weighed on market sentiments. In early trading, the BSE Sensex fell by 225.17 points, reaching 79,707.66, while the NSE Nifty declined by 60.85 points to settle at 24,280.
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Among the 30 stocks on the Sensex, Tech Mahindra, Tata Consultancy Services (TCS), Infosys, HCL Technologies, Titan, Maruti Suzuki, and UltraTech Cement were the most significant laggards, contributing to the decline. In contrast, Larsen & Toubro saw a notable increase, rising over 5 per cent after reporting a 5 per cent rise in its consolidated profit after tax, amounting to Rs 3,395 crore for the September 2024 quarter, attributed to higher income. Other gainers included Sun Pharma, Axis Bank, Tata Steel, and State Bank of India.
Foreign Institutional Investors (FIIs) continued their trend of net selling in the capital markets, offloading shares worth Rs 4,613.65 crore on Wednesday, according to exchange data. This trend of FII selling has raised concerns among investors, as it signifies reduced confidence in the Indian market.
In the Asian markets, Seoul and Tokyo were trading lower, while Shanghai and Hong Kong managed to post gains. On the other hand, US markets concluded in negative territory on Wednesday.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the current market scenario, stating, “This Diwali, it is unlikely to see fireworks in the market. India has been underperforming in October, with the Nifty down 5.7 per cent, while markets in the US and Japan have delivered positive returns, and China and Hong Kong have significantly outperformed.” He attributed India’s underperformance to high valuations, ongoing FII selling, and concerns regarding slowing earnings growth. He noted that this trend is unlikely to change in the near term, although mild pullbacks are still possible.
Meanwhile, the global oil benchmark Brent crude price increased by 0.48 per cent, trading at USD 72.90 per barrel. The previous day, the BSE benchmark Sensex had tumbled by 426.85 points, or 0.53 per cent, settling at 79,942.18, while the Nifty dropped by 126 points, or 0.51 per cent, to close at 24,340.85. This continuing decline underscores the challenges currently facing the Indian equity market as investors navigate a complex landscape of economic indicators and global trends.
(With inputs from PTI)
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