Stock Market Today: Sensex tanks 824 points, Nifty ends 1.14% down
Stock Market Today: Domestic equity markets witnessed continued selling pressure on Monday on concerns over slowing third quarter earnings growth and outflows from foreign portfolio investors.
The 30-share BSE Sensex declined 824.26 points, or 1.08 per cent, to 75,366.17. The broader Nifty 50 tanked 263.15 points, or 1.14 per cent, to close at 22,829.15.
“Broad-based selling across sectors plummeted the Indian market amidst tepid earnings and weak sentiments across the globe. Weak sentiments were further exacerbated as the US trade confrontation continued, like with Colombia this time, said Vinod Nair, Head of Research, Geojit Financial Services.
Foreign investors remained on a selling spree due to moderation in economic growth and the rupee depreciation. So far in the current month (till January 27), foreign portfolio investors net sold Rs 67,022 crore of Indian equities, according to the National Securities Depository Ltd (NSDL) data.
On Monday, the rupee depreciated by 0.07 paise to settle at 86.28 against the dollar.
“A combination of factors like weak US and European market cues, monthly F&O (futures & options) expiry later this week, persistent FII fund outflows, and muted third quarter corporate earnings so far have continued to push investors in reducing their equity exposure,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Mid and small caps remained in their downward trajectory over expensive valuations and slowdown in earnings. BSE Midcap and Smallcap indices lost 2.68 per cent and 3.51 per cent, respectively.
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Strong selling was seen in sectors such as information technology, telecom, metals, oil & gas and realty which dragged the Sensex below the 76,000 mark, Tapse said.
The NSE companies that fell the most included HCL Technologies (4.59 per cent), Tech Mahindra (4.18 per cent), Wipro (3.78 per cent), Hindalco Industries (3.53 per cent) and Shriram Finance (3.22 per cent).
Analysts expect volatility to remain in the market this week ahead of the Federal Open Market Committee (FOMC) meeting on January 28-29 and Union Budget 2025-26 announcement on February 1.