Sensex, Nifty decline in early trade as FPIs selling spree, IT stocks dampen market sentiment
The primary underperformers from the 30-stock Sensex group included Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, NTPC, Axis Bank, Tata Motors, and IndusInd Bank.
In the initial trading session on Monday, stock market indices experienced a drop due to continuous withdrawal of foreign funds, the selling pressure on IT stocks, and negative cues from the U.S. markets.
In the initial trading session, the BSE Sensex dropped by 156.72 points to reach 77,423.59, while the NSE Nifty saw a decrease of 64.25 points, settling at 23,468.45.
Among the constituents of the 30-share Sensex index, significant underperformers included Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, NTPC, Axis Bank, Tata Motors, and IndusInd Bank.
HDFC Bank, Tata Steel, Bajaj Finance and Asian Paints were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,849.87 crore on Thursday, according to exchange data.
So far this month, Indian equity market has witnessed a withdrawal of ₹22,420 crore by foreign investors due to elevated domestic stock valuations, growing investments in China, and the surge in the U.S. dollar along with Treasury yields.
With this sell-off, Foreign Portfolio Investors (FPIs) have recorded a total outflow of ₹15,827 crore in 2024 so far.
Equity markets were closed on Friday for Guru Nanak Jayanti.
V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that despite a 10.4% correction in Nifty from its peak, the market shows no indication of a significant recovery. Factors such as continuous FII selling, downgrades in earnings forecasts for a majority of stocks for FY25, and the impacts of the Trump trade are exerting pressure on the market.
In Asian markets, Seoul, Shanghai and Hong Kong traded higher while Tokyo quoted lower.
The U.S. markets ended lower on Friday.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, mentioned that the anxiety was compounded by feeble cues from Wall Street and the increasing U.S. bond yields.
Global oil benchmark Brent crude climbed 0.51% to $71.40 a barrel.
Thursday witnessed a decrease in the BSE benchmark Sensex by 110.64 points, settling at 77,580.31, marking a 0.14% decline. Similarly, the Nifty also saw a decrease of 26.35 points, settling at 23,532.70, showing a 0.11% decline.
