Unabated selling on negative global cues

Mumbai: The BSE Sensex reeled for the second session running on Monday, weighed by heavy selling in index heavyweight Reliance Industries (RIL) and a drumbeat of negative cues from global markets. Unabated foreign fund outflows and a depreciating rupee added to the bearish sentiment. The 30-share benchmark opened on the back foot, in line with weak Asian equities, and remained in the negative territory throughout the session before closing 617.26 points or 1.08 per cent lower at 56,579.89. On similar lines, the broader NSE Nifty slumped 218 points or 1.27 per cent to 16,953.95.

"Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue. Fear of waning demand due to prolonged Covid lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term," said Vinod Nair, head (research) at Geojit Financial Services.

Foreign institutional investors (FIIs) continued their selling spree, offloading shares worth Rs 2,461.72 crore on Friday, according to stock exchange data.

Tata Steel, Tech Mahindra, NTPC, Titan, Reliance Industries, ITC, Larsen & Toubro and Sun Pharma were among the major laggards in the Sensex pack, shedding as much as 4.47 per cent. Reliance Industries was the biggest drag on the index, tumbling 2.31 per cent, after it called off its Rs 24,713-crore deal to acquire Future Group's retail assets following the secured creditors of the Kishore Biyani-led companies voting against the proposal. In contrast, HDFC Bank, ICICI Bank, HDFC, Kotak Mahindra Bank, Nestle, Maruti Suzuki, Bharti Airtel and Axis Bank finished up to 0.75 per cent higher. ICICI Bank saw good buying after the private sector lender on Saturday reported a 59 per cent jump in standalone net profit to Rs 7,019 crore for the fourth quarter of 2021-22.