Markets decline in early trade amid unabated foreign fund outflows, muted earnings
The BSE benchmark Sensex fell by 484.98 points to 79,001.34 in early trade. The NSE Nifty declined 143.6 points to 24,004.60.
Benchmark sensitive indices Sensex and Nifty fell in early trade on Monday as continuous foreign fund outflows, disappointing quarterly earnings, and weak trends from Asian markets dented investors' sentiment.
Forex traders said the volatility in the equity market is likely to continue as the short-term trend continues to be choppy, and this consolidation is likely to continue in the near-term with a weak bias.
The BSE benchmark Sensex fell by 484.98 points to 79,001.34 in early trade. The NSE Nifty declined 143.6 points to 24,004.60.
From the 30-share Sensex pack, Asian Paints tumbled over 8% after the company on Saturday reported a 43.71% decline in consolidated net profit to Rs 693.66 crore for the September quarter, impacted by soft-demand conditions, material price inflation, and a decline in decorative and coatings business in the domestic market.
, Adani Ports, , , , and were also among the laggards. However, Tata Motors, Power Grid, Maruti, and HCL Technologies were among the gainers.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,404.04 crore on Friday, according to exchange data.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, Indian markets remain under pressure, largely due to relentless foreign investor selling.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were quoting lower. Wall Street ended in the positive territory on Friday.
"The sustained rally in the US markets, which have taken the Dow and S&P 500 above 40,000 and 6,000, respectively, is no longer a tailwind for Indian markets. In India, in contrast, worse-than-expected earnings downgrades for FY25 are weighing on stock prices favouring the bears in the near-term," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Global oil benchmark Brent crude dipped 0.42% to $73.56 a barrel.
On Friday, the BSE benchmark gauge Sensex declined by 55.47 points or 0.07% to settle at 79,486.32. The Nifty dipped 51.15 points or 0.21% to 24,148.20.
Edited by Suman Singh
