1 hr ago
Sensex, Nifty Fall as Foreign Fund Outflows Weigh
India’s main stock market indexes fell early on Thursday.
The Sensex and Nifty both lost value.
Investors were worried because foreign investors were selling many Indian shares.
Foreign investors sold shares worth Rs 10,148.41 crore on Wednesday.
Their selling over two days reached Rs 20,128 crore.
Higher US borrowing costs may encourage more selling, according to an analyst.
However, oil prices dropped below USD 100 per barrel.
Cheaper oil helped limit the market’s decline.
The Sensex fell 215 points to 72,257.30 in early Thursday trade.
The Nifty declined 107.25 points to 22,518.90.
Foreign Institutional Investors sold equities worth Rs 10,148.41 crore on Wednesday.
FII selling totaled Rs 20,128 crore over the previous two trading sessions.
Brent crude fell below USD 100 per barrel, providing some support to sentiment.
- Who
- Indian stock-market investors, including Foreign Institutional Investors, traded shares; analysts V K Vijayakumar and Hariselvan Radhakrishnan commented on market conditions.
- What
- The Sensex and Nifty declined in early Thursday trading.
- Where
- Indian stock exchanges.
- When
- Early trade on Thursday, following Wednesday’s market session.
- Why
- Continued foreign fund outflows and elevated global borrowing costs pressured sentiment, while lower crude prices cushioned the fall.
Factors Driving Declines
Factors Limiting Declines
Market sentiment
Factors Driving Declines
Continued FII selling and rising global borrowing costs are weighing on investor sentiment and could lead to further foreign selling.
Factors Limiting Declines
Cooling crude prices and softer US inflation are providing a counterweight to the pressure on domestic markets.
Foreign investor activity
Factors Driving Declines
FIIs sold equities worth Rs 20,128 crore across the last two trading sessions through the exchanges.
Factors Limiting Declines
Despite exchange selling, FIIs have continued investing through the primary market and buying expensive mid- and small-cap stocks, according to V K Vijayakumar.
Key facts
- Sensex early level
- 72,257.30, down 215 points
- Nifty early level
- 22,518.90, down 107.25 points
- Foreign selling Wednesday
- Rs 10,148.41 crore
- Two-day foreign selling
- Rs 20,128 crore
- Brent crude
- USD 97.13 per barrel, down 0.92%
- US 10-year bond yield
- 5.3%, according to analyst V K Vijayakumar
- Previous closing levels
- Sensex: 72,480.29; Nifty: 22,620.45
Quotes
Hariselvan Radhakrishnan
Founder and CEO of HST Wealth
“The domestic market remains under pressure after extending its decline, with September marking the Nifty's steepest monthly fall since March. Foreign selling and elevated global borrowing costs continue to weigh on sentiment, although the easing in crude prices and softer US inflation provide some counterweight.”
deccanchronicle.com
telegraphindia.com
“The sustained FII selling became intense during the last two trading days when the FIIs sold equity for a total of Rs 20,128 crore. With the US 10-year bond yield rising further to 5.3 per cent, FIIs may continue to sell.”
deccanchronicle.com
telegraphindia.com
Sources
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