Sensex, Nifty decline on selling in banking, financial stocks; weak global trends

Mumbai, Oct 30: Benchmark equity indices Sensex and Nifty declined on Wednesday, as selling pressure in banking and financial stocks amid a bearish trend in global markets unnerved investors.

Besides, weak earnings numbers and persistent foreign fund outflows hit market sentiments, traders said.

The BSE Sensex tumbled 426.85 points or 0.53 per cent to settle at 79,942.18. During the session, the index hit a high of 80,435.61 and low of 79,821.99.

The NSE Nifty dropped 126 points or 0.51 per cent to 24,340.85.

A moderation in FII selling and a slight correction in the valuation of the domestic equities are positive signals for the Indian market, traders said.

From the 30-share Sensex pack, Infosys, ICICI Bank, Kotak Mahindra Bank, Mahindra & Mahindra, State Bank of India, HCL Technologies, Axis Bank, NTPC and HDFC Bank were among the laggards.

In contrast, Maruti, IndusInd Bank, Adani Ports, ITC and UltraTech Cement defied broader market trends and ended in positive territory.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 548.69 crore, according to exchange data.

“In the near term, the market will be influenced by two factors - one positive and the other negative. The positive is the sharp decline in FII selling to just Rs 548 crore on Tuesday. This is an indication that the FII tactical trade of ‘Sell India, Buy China’ is coming to an end.

“With more Domestic Institutional Investors (DII) and retail money coming to the market and FII selling tapering off, the market may get a near-term boost, aided by the festive mood. But the uptrend is unlikely to sustain since the Q2 earnings numbers indicate softness in earnings for FY25,” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

The BSE smallcap gauge jumped 1.54 per cent and midcap index ended marginally up by 0.04 per cent.

“The domestic market remains cautious due to aggressive selling by FIIs. Positively, strong domestic inflows are supporting market resilience though volatility has markedly increased.

“Other EMs are also consolidating in anticipation of upcoming US economic data releases, elections, and the FOMC interest rate decision. Considering the weak Q2 domestic earnings and muted commentary, India’s premium valuations are moderating,” Vinod Nair, Head of Research, Geojit Financial Services, said.

Among sectoral indices, consumer durables fell by 1.21 per cent, bankex (1.04 per cent), teck (0.76 per cent), IT (0.67 per cent) and oil & gas (0.62 per cent).

On the other hand, services jumped 1.86 per cent, industrials (1.04 per cent), FMCG (0.95 per cent), commodities (0.71 per cent) and telecommunication (0.26 per cent).

“Global equities came under pressure on Wednesday as investors played safe ahead of the US Fed decision, US elections and US October jobs report,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.

In Asian markets, Seoul, Shanghai and Hong Kong settled lower, while Tokyo ended in the positive territory.

European markets were trading lower. The US markets ended on a mixed note on Tuesday.

Global oil benchmark Brent crude climbed 0.63 per cent to USD 71.57 a barrel.

The BSE benchmark climbed 363.99 points or 0.45 per cent to settle at 80,369.03 on Tuesday. The Nifty rose 127.70 points or 0.52 per cent to 24,466.85.