Markets tumble as FII outflows, H-1B fee weigh
Sensex down 556 pts, Nifty slips below 25k; Weak global cues also hit mkt sentiment
Mumbai: Stock markets closed with losses for the fifth consecutive day on Thursday, with the Sensex tumbling 555.95 points due to relentless foreign fund outflows and concerns over the US H-1B visa fee, making investors jittery.
The 30-share BSE Sensex tanked 555.95 points or 0.68 per cent to settle at 81,159.68. During the day, it dropped 622.74 points or 0.76 per cent to 81,092.89. The 50-share NSE Nifty tumbled 166.05 points or 0.66 per cent to 24,890.85. A weak trend in global peers also hit the investor sentiment, analysts said.
Among Sensex firms, Trent, Power Grid, Tata Motors, Tata Consultancy Services, Asian Paints, NTPC, Adani Ports and Bajaj Finance were the laggards. However, Bharat Electronics, Axis Bank and Bharti Airtel were the major gainers.
“The Nifty slipped below the psychological 25,000 mark today, deepening its bearish streak as a host of global and domestic headwinds rattled investor confidence. Persistent FII outflows, a record-weak rupee, and renewed worries over the US H-1B visa fee hike—seen as a drag on Indian IT earnings—have all combined to sour sentiment,” Hariprasad K, Research Analyst and Founder - Livelong Wealth, said. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,425.75 crore on Wednesday, according to exchange data.
“Indian markets extended its losing streak for a fifth straight session as investors booked profits amid persistent FII outflows and uncertainty over US-India trade talks, which is expected to dent Q2 GDP growth,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
The BSE smallcap gauge dropped 0.75 per cent and midcap declined by 0.72 per cent. Among sectoral indices, realty tanked 1.70 per cent, followed by power (1.38 per cent), BSE Focused IT (1.23 per cent), utilities (1.21 per cent), consumer discretionary (1.14 per cent), BSE Focused IT (1.23 per cent), IT (1.10 per cent), auto (0.93 per cent) and teck (0.75 per cent). Telecommunication and metal were the gainers. As many as 2,709 stocks declined while 1,474 advanced and 136 remained unchanged on the BSE. In the past five trading days, the BSE benchmark tanked 1,854.28 points or 2.23 per cent, and the Nifty dropped 532.75 points or 2 per cent. On Wednesday, the Sensex dropped 386.47 points or 0.47 per cent to end at 81,715.63.
