Mumbai (Maharashtra) [India], November 12 : Indian equity indices, the BSE Sensex and NSE Nifty50, both ended in the red on Tuesday, due to the losses in banking, auto, and financial sector stocks.
The markets extended the fourth consecutive day of declines driven by concerns over weak earnings and foreign fund outflows.
At the end of the trading today, Nifty at the National Stock Exchange (NSE) closed at 23,883.45, down 257.85 points, and BSE Sensex closed at 78,675.18, declining 820.97 points. Both benchmarks declined over one per cent.
Losses were led by heavyweights like Britannia, Bharat Electronics, NTPC, Asian Paints, and HDFC Bank, with some stocks declining up to 7.3 per cent. On the other hand, Trent, Sun Pharma, Infosys, and HCL Tech bucked the trend, posting gains.
The market was weighed down by sustained foreign institutional investor (FII) selling and subdued quarterly earnings from key sectors such as automobiles and financial services.
"Two strong factors have been at play in this consolidating market. One, the relentless selling by FIIs has been favouring the bears and pulling the market down. Two, the sustained buying by DIIs has been supporting the market preventing a crash in the market. How the market will trend in the coming days will depend on the relative strength of these two factors," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
FIIs sold Rs 2,026 crore on November 11, although the intensity of selling is gradually reducing. Domestic institutional investors (DIIs) continue to support the market with robust mutual fund inflows, which surged to a record Rs 41,887 crore in October.
"The current downward movement in the market is not a flash dip and is driven by some serious macro concerns. The INR is depreciating against the dollar and was at its all-time low today. Despite our GDP's growth, private investors are struggling to keep up with their previous growth rates. Amid this, several large and medium-sized companies have reported weak quarterly results, disappointing investors. This weak performance is among the key factors in accelerating the exodus of funds from the secondary market," said VLA Ambala, Co-Founder, Stock Market Today.
Observing today's market, Vinod Nair, Head of Research, Geojit Financial Services said that FII-triggered selling pressure continued to impact the domestic market, adding that the recent strengthening of the dollar, driven by aggressive 'Trumponomics' is adding fears.
Later today, retail inflation data for October is slated to be released which will be keenly watched by the market participants in upcoming trading sessions in the week.
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