Mumbai: Heavy foreign fund outflows, as well as selling pressure, continued to subdue India’s two key domestic indices for the third consecutive session Friday.
Friday, FIIs sold Rs 5,142.63 crore on the BSE, the NSE and the MSEI in the capital market segment.
Initially, both the indices opened in the red, however, they pared some of their morning losses.
Globally, Asian markets were largely down amid concerns about slowing growth and rising inflation. Similarly, European stock markets edged lower Friday, weighed by disappointing results from US tech giants Apple and Amazon, and by the rise in Eurozone government bond yields after Thursday’s European Central Bank meeting.
On the domestic front, market volumes were higher than the previous day.
Amongst sectors, realty, consumer durables and auto indices gained, whereas banks and IT indices fell the most.
Consequently, the 30-scrip Sensex closed at 59,306.93 points, down 677.77 points or 1.13 per cent. It opened at 59,857.33 points from its previous close of 59,984.70 points.
Besides, the NSE Nifty50 ended the day’s trade at 17,671.65 points, lower by 185.60 points or 1.04 per cent.
It opened at 17,833.05 points from its previous close of 17,857.25 points.”
The intra day bounces are not sustaining and are getting sold into,” HDFC Securities’ Head of Retail Research, Deepak Jasani, said.
“Advance decline ratio ended in the negative though better than that in the morning. FPI selling is probably resulting in this kind of weakness. Stability in global markets could halt this selling and lead to gains in the Nifty. On the downside, 17,557 could provide support.”
Motilal Oswal Financial Services’ Head, Retail Research, Siddhartha Khemka said: “Equity markets opened negative and plunged down in the initial tick, though it did recover somewhat in the first half of the session.
“However, selling pressure again gripped the market in the second half which led to markets closing with a loss of one per cent.”
Geojit Financial Services’ Head of Research, Vinod Nair, said: “The domestic market continued to witness selling as energy and private bank stocks remained under pressure following dull global sentiments.”
“Decisions of the Fed in its meeting next week will be a major factor that will drive global equities in the coming days.”
IANS
