Dalal St in freefall on unabated FII outflows
Domestic stock market slips to 2-mth low as rising US bond yields and policy actions by China prompting foreign funds to offload; All sectoral indices in red
image for illustrative purpose
Mumbai: BSE benchmark Sensex plunged by 930.55 points, while broader NSE Nifty dropped below the 24,500 level to settle at more than two-month lows on Tuesday due to an intense sell-off across sectors and massive foreign fund exodus from the capital markets. All sectoral indices ended lower.
Extending losses to the second day, the BSE Sensex plummeted 930.55 points or 1.15 per cent to settle at 80,220.72, the lowest closing level since August 14. During the day, it tanked 1,001.74 points or 1.23 per cent to 80,149.53. The NSE Nifty tumbled 309 points or 1.25 per cent to 24,472.10 as 47 of its constituents closed lower and three advanced. The index hit a low of 24,445.80 during the day.
“Bearish sentiment continued to dominate the domestic market today amid heightened volatility, with small and midcap stocks taking the biggest hit. The recent sharp rise in US bond yields signals diminished expectations for aggressive rate cuts by the US Fed, also affecting fund flows to EMs. In the short term, this bearish outlook may persist due to sluggish earnings growth trends,” said Vinod Nair, head (research), Geojit
Financial Services.
A weak earnings growth trend and sluggish global markets hit investor sentiment, analysts said, adding that rising US bond yields and policy actions by China are triggering FII outflows. The BSE smallcap gauge tanked 3.81 per cent and midcap index slumped 2.52 per cent.
“Nifty opened gap up, however, as the day progressed selling pressure intensified. On the daily charts Nifty has slipped decisively below the 20-week average (24718) which is a sign of weakness,” adds Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas.
BSE Industrials tumbled 3.51 per cent, realty (3.29 per cent), metal (2.99 per cent), commodities (2.80 per cent), power (2.64 per cent), utilities (2.64 per cent), telecommunication (2.63 per cent) and consumer discretionary (2.54 per cent). A total of 3,428 stocks declined while 559 advanced and 71 remained unchanged
on the BSE. From the 30 Sensex pack, Mahindra & Mahindra, State Bank of India, Power Grid, Tata Steel, IndusInd Bank, Tata Motors, Larsen & Toubro, NTPC, Bajaj Finance and Reliance were among the biggest laggards. In contrast, ICICI Bank, Nestle and Infosys were the gainers from the pack. Foreign Institutional Investors (FIIs) offloaded equities worth Rs2,261.83 crore on Monday, while Domestic Institutional Investors (DIIs) bought equities worth Rs3,225.91 crore, according to exchange data.
