Markets Edge Lower On Unabated FII Offloading

Mumbai: Benchmark Sensex declined nearly 200 points on Friday, extending its losing run to the eighth day due to persistent foreign fund outflows and weak quarterly earnings by corporates.

The 30-share BSE benchmark Sensex dropped 199.76 points or 0.26 per cent to settle at 75,939.21 with 21 of its constituents ending lower. During the day, it tanked 699.33 points or 0.91 per cent to 75,439.64. The NSE Nifty declined 102.15 points or 0.44 per cent to 22,929.25. In eight trading days to Friday, the BSE benchmark has tumbled 2,644.6 points or 3.36 per cent, and the Nifty slumped 810 points or 3.41 per cent. From the 30-share Sensex pack, Adani Ports dropped over 4 per cent. On the weekly front, the BSE bellwether gauge plunged 1,920.98 points or 2.46 per cent, and the Nifty declined 630.7 points or 2.67 per cent.

“The risk-averse sentiment continues to rule investors’ minds as corporate earnings are significantly lower than the market expectations during the start of the year, especially for mid and small caps. Muted earnings trend, INR depreciation along with external factors like tariffs are expected to keep the sentiments weak in the near term, which could further push FIIs outflows. Volatility is expected to stay elevated until there is clarity on tariffs and a recovery in corporate earnings,” said Vinod Nair, head (research), Geojit Financial Services.

As many as 3,320 stocks declined while 681 advanced and 82 remained unchanged on the BSE.

“The Indian equity markets have witnessed a devastating trading week, completely overshadowing the positive momentum built over the past two weeks. This week was marked by an unsettling trend of eight straight sessions of sell-offs, creating a climate of concern among investors,” added Osho Krishnan, sr analyst (technical & derivatives), Angel One.

The BSE smallcap gauge tanked 3.24 per cent and midcap index dropped 2.59 per cent. Among BSE sectoral indices, services plunged 3.16 per cent, industrials (3.03 per cent), capital goods (2.76 per cent), power (2.65 per cent), utilities (2.52 per cent), consumer durables (2.39 per cent), commodities (2.25 per cent) and realty (2.03 per cent). BSE Focused IT emerged as the only gainer. UltraTech Cement, Sun Pharma, IndusInd Bank, NTPC and Tata Steel were also among the laggards. Nestle, ICICI Bank, Infosys, Tata Consultancy Services and HCL Tech were among the gainers.