Benchmarks falter as weak cues drag
Persistent foreign fund outflows, a weak rupee and sluggish global market trends dented investor sentiment
Benchmarks falter as weak cues drag
A risk-averse mood dominated trading as the rupee’s breach of the 91 level against the US dollar raised macro concerns, while weakness across Asian markets added to global uncertainty. This combination prompted investors to reduce risk, triggering broad-based profit-booking, particularly across realty, financial services, metal and IT names - Ponmudi R, CEO, Enrich Money
Mumbai: Benchmark Sensex tumbled 533.50 points and the broader Nifty declined to the 25,860 level on Tuesday as persistent foreign fund outflows, a weak rupee and sluggish global market trends dented investor sentiment.
The 30-share BSE Sensex tanked 533.50 points or 0.63 per cent to settle at 84,679.86. During the day, it dived 592.75 points or 0.69 per cent to 84,620.61. The 50-share NSE Nifty dropped 167.20 points or 0.64 per cent to a week’s low of 25,860.10.
Among Sensex firms, Axis Bank tanked the most by 5.03 per cent. Eternal, HCL Tech, Bajaj Finserv, Tata Steel, UltraTech Cement and Bajaj Finance were also among the laggards. However, Titan, Bharti Airtel, Mahindra & Mahindra and Asian Paints were among the gainers.
“Continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
The rupee breached the record low level of 91 against the US dollar and hit 91.14 in intra-day trade due to foreign fund outflows on Tuesday. The BSE midcap gauge dropped 0.78 per cent, and the smallcap index dipped 0.69 per cent. Among sectoral indices, realty tanked 1.36 per cent, followed by bankex (1.03 per cent), commodities (0.91 per cent), IT (0.90 per cent), BSE Focused IT (0.86 per cent), financial services (0.83 per cent) and metal (0.82 per cent). Telecommunication and consumer durables were the only gainers. A total of 2,519 stocks declined while 1,651 advanced and 158 remained unchanged on the BSE.
“A risk-averse mood dominated trading as the rupee’s breach of the 91 level against the US dollar raised macro concerns, while weakness across Asian markets added to global uncertainty.
