Mkts further fall on unabated FII outflows
Sensex, Nifty fall for 2nd session on unabated foreign fund outflows
image for illustrative purpose
Negative Global Cues
♦ During the day, Sensex plunged 633.33 pts, or 0.96%, to 64,878.77
♦ FIIs offloaded equities worth Rs2,034.14 cr
♦ Weak trends in US, Asian mkts dampened sentiment
♦ Despite strong Indian fundamentals, sluggish global mkts impacted negatively
Mumbai: Equity benchmark indices ended lower by 286.06 points on Wednesday, extending their previous day’s fall, due to unabated foreign fund outflows and weak trends in the US and Asian markets. The 30-share BSE Sensex went lower by 286.06 points, or 0.44 per cent, to settle at 65,226.04. During the day, it plunged 633.33 points, or 0.96 per cent, to 64,878.77. The Nifty declined 92.65 points, or 0.47 per cent, to end at 19,436.10.
“Overseas investors are pulling out funds from the Indian equity markets as the current rally in US dollar and bond yields are making emerging market assets less attractive. Despite our strong macroeconomic growth performance, India is not insulated from global problems, and hence any correction in global markets due to worries over further rate hikes would have a rub-off effect here,” said Shrikant Chouhan, head of research (retail), Kotak Securities Ltd.
“Strong US jobs data is reinforcing Fed’s hawkish stance and multi-year high US bond yields is signalling an impending interest rate hike. Globally, investors are adopting a risk-averse strategies due to inflation concerns and the strengthening US dollar. In India, despite a robust economy, premium valuations of midcaps and recent rally is augmenting consolidation,” added Vinod Nair, head (research) at Geojit Financial Services.