Key indices plummet amid profit booking, FII outflows

The market experienced a broad-based decline, slipping below the 26,000-mark as in-vestors turned cautious ahead of this week’s Fed policy decision. Despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation - Vinod Nair, Head-Research, Geojit Investments Ltd

Mumbai: Equity benchmark indices Sensex and Nifty nosedived on Monday after two consecu-tive days of gains, as investors rushed to take profits amid the unabated selling of stocks by for-eign investors. Analysts said investors turned defensive ahead of this week’s US Federal Re-serve policy decision, which further weakened the sentiment.

The 30-share BSE Sensex plunged by 609.68 points, or 0.71 per cent, to close at 85,102.69. During the day, it plummeted by 836.78 points, or 0.97 per cent, to hit the intraday low of 84,875.59. Snapping a two-day gaining streak, the 50-share NSE Nifty declined by 225.90 points, or 0.86 per cent, to settle at 25,960.55. In the intraday session, it dropped 294.2 points, or 1.12 per cent, to hit a low of 25,892.25.

Among the Sensex constituents, Bharat Electronics Ltd, Eternal, Trent, Tata Steel, Bajaj Finance, Adani Ports, Bajaj Finserv, State Bank of India, PowerGrid, Asian Paints, Tata Motors Passenger Vehicles, Titan, NTPC, Kotak Mahindra Bank, Larsen & Toubro and Bharti Airtel were among the laggards. Tech Mahindra, HCL Technologies, Reliance Industries and HDFC Bank were the only gainers.

“The market experienced a broad-based decline, slipping below the 26,000-mark as investors turned cautious ahead of this week’s Fed policy decision,” Vinod Nair, Head of Research, Geojit Investments Ltd, said. He added that despite robust domestic growth figures and the RBI’s recent rate cut, short-term sentiment remains overshadowed by global monetary policy concerns, persistent FII outflows, and currency depreciation. “Volatility was further amplified by a surge in Japanese bond yields to multi-year highs, sparking fears of a potential unwinding of the yen carry trade, Nair said.

The BSE midcap gauge declined 1.73 per cent, while smallcap index dropped 2.20 per cent. Among sectoral indices, Services tumbled by 3.70 per cent, Realty by 3.50 per cent, Capital Goods by 2.83 per cent, Telecommunication by 2.53 per cent, Industrials by 2.21 per cent, Util-ities by 2.10 per cent, Metal by 1.96 per cent, and Power by 1.84 per cent. As many as 3,348 stocks declined, while 950 advanced and 187 remain unchanged on the BSE.

“Indian equities declined on Monday, with the Nifty slipping a little over 1 per cent to 25,897 and the Sensex falling nearly 800 points. The pullback was led by profit-taking in small- and midcap stocks, along with selling pressure in select index heavyweights. “Market breadth re-mained weak, and FII outflows continued, while investors stayed cautious ahead of Wednes-day’s US Federal Reserve policy announcement,” Gaurav Garg, Research Analyst Lemonn Mar-kets Desk, said.