Sensex, Nifty fall again as foreign outflows and IT stock sell-offs weigh on markets

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The Sensex and Nifty benchmark equity indices recorded declines for the second consecutive session on Thursday, primarily due to a sustained outflow of foreign funds and notable losses in IT sector stocks, as per PTI reports.

The BSE Sensex dropped 553.12 points, or 0.69 per cent, closing at 79,389.06. At one point during the day, the index fell as much as 654.25 points or 0.81 per cent, hitting a low of 79,287.93. Meanwhile, the NSE Nifty slipped by 135.50 points or 0.56 per cent, ending at 24,205.35. Both indices have been on a downward trend, with investor sentiment dampened by selling pressure in IT stocks and persistent foreign fund outflows, according to data provided by stock exchanges.

Among the 30-share Sensex group, IT companies such as Tech Mahindra, HCL Technologies, Tata Consultancy Services (TCS), and Infosys faced the steepest losses. Other major laggards included Maruti Suzuki and Asian Paints, reflecting broader weakness across sectors.

However, there was a degree of resilience in some heavyweight stocks, which helped moderate the overall decline. Infrastructure giant Larsen & Toubro led the gainers, jumping over 6 per cent following the announcement of a 5 per cent increase in consolidated profit after tax to Rs 3,395 crore for the September 2024 quarter. The company's rise in profit was attributed to higher income over the quarter, which seemed to bolster investor confidence in its shares. Additionally, Mahindra & Mahindra, Power Grid, JSW Steel, Kotak Mahindra Bank, HDFC Bank, and Sun Pharma posted gains, providing some support to the indices amid a largely negative trading session.

The foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, offloading shares worth Rs 4,613.65 crore, according to exchange data. This selling activity has contributed to downward pressure on the markets, as foreign investors continue to adjust their portfolios in response to evolving global economic conditions.

In the Asian market landscape, Seoul, Tokyo, and Hong Kong markets closed in negative territory, while Shanghai managed to end on a positive note. European markets were trading lower as well, and the US markets also ended negatively on Wednesday, signalling a broader global market weakness that has influenced Indian equity sentiment.

Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, noted, "Markets traded under pressure on monthly expiry day, slipping over half a per cent. Early weakness in IT majors weighed on sentiment, with other sectors joining the decline later in the session. However, resilience in select heavyweight stocks helped limit the overall losses."

Brent crude oil, a global benchmark, rose 0.36 per cent to USD 72.81 a barrel, a slight increase amidst otherwise subdued market activity.

The BSE benchmark had previously fallen 426.85 points, or 0.53 per cent, to settle at 79,942.18 on Wednesday. The Nifty similarly dropped 126 points, or 0.51 per cent, closing at 24,340.85. The markets appear to be contending with a mix of domestic and global factors that continue to impact investor confidence and fund flows, as observed in the recent trading patterns.

According to PTI, ongoing challenges such as global market volatility, sector-specific downturns, and foreign outflows are likely to shape the performance of Indian equities in the near term.

(With inputs from PTI)