Markets stay in red for 3rd day as persisting FII exodus weigh
Selling in heavyweight stocks across sectors led to broad-based weakness, while muted cues from global markets further dampened investor sentiment
Mumbai: Stock markets declined for the third consecutive day on Wednesday, with benchmark Sensex closing lower by 120 points at a week's low due to relentless foreign fund outflows.
The 30-share BSE Sensex edged lower by 120.21 points or 0.14 per cent to settle at 84,559.65. During the day, it dropped 263.88 points or 0.31 per cent to 84,415.98. The 50-share NSE Nifty declined by 41.55 points or 0.16 per cent to a week's low of 25,818.55.
Among Sensex firms, Trent fell the most by 1.61 per cent. HDFC Bank dropped by nearly 1 per cent, emerging as a major drag on the index. ICICI Bank, Adani Ports, Bajaj Finserv, Bharat Electronics, Titan and Asian Paints were also among the laggards. However, State Bank of India rose the most by 1.51 per cent, helping Sensex restrict losses. Infosys, Axis Bank and Maruti were among the gainers.
"Foreign investors are pulling out funds, and emerging markets are struggling, while developed economies remain strong, showing that investors are becoming more cautious about emerging markets," Vinod Nair, Head of Research, Geojit Investments Limited, said. Selling in heavyweight stocks across sectors led to broad-based weakness, while muted cues from global markets further dampened investor sentiment, Ajit Mishra – SVP, Research, Religare Broking, said.
The BSE smallcap gauge declined 0.85 per cent and midcap index dipped by 0.53 per cent. Among sectoral indices, capital goods declined by 0.96 per cent, realty (0.81 per cent), consumer durables, industrials (0.76 per cent), services (0.64 per cent). BSE Energy, IT, metal, oil & gas, teck and BSE Focused IT were the gainers. A total of 2,694 stocks declined while 1,475 advanced and 159 remained unchanged on the BSE. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,381.92 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 1,077.48 crore, according to exchange data.
Analysts said a rebound in the rupee from record low levels offers temporary relief, as global uncertainty and sustained foreign selling keep upside potential limited.
