Sensex falls 359 points due to selling in IT shares, withdrawal of foreign funds
Mumbai: Benchmark Sensex falls by 359 points nifty IT stocks closed below 21,400 levels on Thursday due to selling and continued foreign fund withdrawals. 30-share BSE The Sensex closed at 70,700.67, down 359.64 points or 0.51 percent.
The index opened lower and touched a low of 70,319.04, down 741.27 points or 1.04 per cent in the day’s trade. 19 Sensex stocks fell, while 11 rose.
Nifty fell 101.35 points or 0.47 per cent to 21,352.60 with 34 of its constituents ending in the red.
Analysts said rising US bond yields and mixed financial results from corporates triggered FII selling. IT, pharma and FMCG stocks declined, while realty and energy stocks rose.
Among Sensex stocks, Tech Mahindra fell over 6 per cent as the company reported a 60 per cent decline in net profit at Rs 510.4 crore in the December quarter.
Bharti Airtel, ITC, Asian Paints, HDFC Bank, Nestle, Tata Steel and Maruti were among the other major laggards.
IT stocks fell as third quarter results failed to impress investors. wipro Fell 1.68 percent, HCL Tech fell 1.54 percent tcs 1.03 percent and Infosys Up to 0.22 percent.
NTPC, ICICI Bank, IndusInd Bank, Reliance Industries, JSW Steel, Bajaj Finance, Bajaj Finserv And Mahindra & Mahindra were among the gainers.
“Taking cues from global markets, benchmark indices closed on a negative note as positive turnaround in the US economy delayed expectations of a rate cut,” he said. Vinod NairHead of Research, Geojit Financial Services.
“FIIs are in selling mode as yields on US benchmark bonds rise. Broader markets unable to sustain gains on concerns of higher valuations, bottom line results and continued geopolitical tensions in the Middle East, followed by F&O expiry Is.” “The market is being impacted,” Nair said.
In the broader market, the BSE midcap gauge declined 0.36 per cent while the smallcap index rose 0.54 per cent.
Among the indices, Tech fell by 1.39 per cent, IT by 1.23 per cent, Telecom (1.21 per cent), FMCG (1.01 per cent) and Bankex (0.58 per cent).
Utilities, Power, Services, Commodities and Realty were among the gainers.
Markets will remain closed on Friday on the occasion of Republic Day.
On the weekly front, the BSE benchmark fell 982.56 points or 1.37 per cent and the Nifty fell 269.8 points or 1.24 per cent.
“The ongoing stress in banking majors is largely weighing on sentiment, although selective buying in others is limiting losses so far.” Ajit Mishrasaid SVP – Technical Research, Religare Broking Ltd.
In Asian markets, Seoul, Tokyo, Shanghai and hong kong Settle in the positive zone.
European markets were trading mostly lower. On Wednesday, American markets closed on a mixed note.
According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 6,934.93 crore on Wednesday.
Global oil benchmark Brent crude rose 1.02 percent to US$80.96 per barrel.
The index opened lower and touched a low of 70,319.04, down 741.27 points or 1.04 per cent in the day’s trade. 19 Sensex stocks fell, while 11 rose.
Nifty fell 101.35 points or 0.47 per cent to 21,352.60 with 34 of its constituents ending in the red.
Analysts said rising US bond yields and mixed financial results from corporates triggered FII selling. IT, pharma and FMCG stocks declined, while realty and energy stocks rose.
Among Sensex stocks, Tech Mahindra fell over 6 per cent as the company reported a 60 per cent decline in net profit at Rs 510.4 crore in the December quarter.
Bharti Airtel, ITC, Asian Paints, HDFC Bank, Nestle, Tata Steel and Maruti were among the other major laggards.
IT stocks fell as third quarter results failed to impress investors. wipro Fell 1.68 percent, HCL Tech fell 1.54 percent tcs 1.03 percent and Infosys Up to 0.22 percent.
NTPC, ICICI Bank, IndusInd Bank, Reliance Industries, JSW Steel, Bajaj Finance, Bajaj Finserv And Mahindra & Mahindra were among the gainers.
“Taking cues from global markets, benchmark indices closed on a negative note as positive turnaround in the US economy delayed expectations of a rate cut,” he said. Vinod NairHead of Research, Geojit Financial Services.
“FIIs are in selling mode as yields on US benchmark bonds rise. Broader markets unable to sustain gains on concerns of higher valuations, bottom line results and continued geopolitical tensions in the Middle East, followed by F&O expiry Is.” “The market is being impacted,” Nair said.
In the broader market, the BSE midcap gauge declined 0.36 per cent while the smallcap index rose 0.54 per cent.
Among the indices, Tech fell by 1.39 per cent, IT by 1.23 per cent, Telecom (1.21 per cent), FMCG (1.01 per cent) and Bankex (0.58 per cent).
Utilities, Power, Services, Commodities and Realty were among the gainers.
Markets will remain closed on Friday on the occasion of Republic Day.
On the weekly front, the BSE benchmark fell 982.56 points or 1.37 per cent and the Nifty fell 269.8 points or 1.24 per cent.
“The ongoing stress in banking majors is largely weighing on sentiment, although selective buying in others is limiting losses so far.” Ajit Mishrasaid SVP – Technical Research, Religare Broking Ltd.
In Asian markets, Seoul, Tokyo, Shanghai and hong kong Settle in the positive zone.
European markets were trading mostly lower. On Wednesday, American markets closed on a mixed note.
According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 6,934.93 crore on Wednesday.
Global oil benchmark Brent crude rose 1.02 percent to US$80.96 per barrel.
