Stock market down; Sensex slips 500 points, Nifty below 23400
New Delhi| Sensex fell 156.72 points to 77,423.59 in early trade on Monday. Nifty was seen trading down 64.25 points at 23,468.45. The rupee rose 8 paise to 84.38 against the US dollar in early trade.
Gradually Sensex slipped to 500 points, while Nifty also fell below 23400. Indian benchmark equity indices witnessed a decline on Monday as concerns eroded earnings and foreign capital outflows, while signs of a decline in interest rate cuts from the Federal Reserve chairman also weighed on sentiment.
Equity benchmarks slipped again in early trade on Monday due to continued withdrawal of foreign funds, selling in IT stocks and weak signals from US markets. By 9:46 am the BSE Sensex was trading down 511 points at 77,058, while the Nifty 50 was down 162 points at 23,370.
Of the 30 Sensex stocks, Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, NTPC, Axis Bank, Tata Motors and IndusInd Bank had the biggest falls. Shares of HDFC Bank, Tata Steel, Bajaj Finance and Asian Paints showed gains.
Foreign institutional investors (FIIs) sold equities worth Rs 1,849.87 crore on Thursday, according to exchange data. Foreign investors pulled out Rs 22,420 crore from the Indian equity market so far this month. This is due to higher domestic share valuations, rising investments in China and the US dollar as well as increased treasury yields.
Foreign portfolio investors (FPIs) have sold a total of Rs 15,827 crore so far in 2024. Stock markets remained closed on Friday on the occasion of Guru Nanak Jayanti. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “Even though Nifty has fallen 10.4 per cent from the peak, there are no signs of continued improvement in the market”. FIIs continued selling, declines in earnings for most stocks for FY25 and Trump trade results weigh heavily on the market”
In Asian markets, Seoul, Shanghai and Hong Kong gained momentum, while Tokyo recorded a decline. American markets closed with a decline on Friday. “Weak signals from Wall Street and rising income on bonds in the US have raised concerns”, said Prashant Taapsee, senior vice president (research), Mehta Equities Ltd Brent crude, the global oil standard, rose 0.51 percent to $71.40 a barrel. On Thursday, the BSE Sensex had fallen by 110.64 points, or 0.14 per cent, to close at 77,580.31 points. Nifty had closed at 23,532.70 points, down 26.35 points or 0.11 percent.
