Asian markets and foreign money outflows weakened equity benchmark indices in early trade. BSE Sensex lost 318.75 points, Nifty fell 82.8. The rupee ended practically steady versus the dollar after foreign institutional investors sold Rs 190.06 crore in stocks.
Equity benchmark indices fell early Monday on poor Asian markets and continued foreign capital withdrawals. Early trade saw the 30-share BSE Sensex fall 318.75 points to 64,940.70. The Nifty fell 82.8 points to 19,442.75.
Sensex laggards were Bajaj Finance, Infosys, ICICI Bank, Nestle, Kotak Mahindra Bank, and Asian Paints.
The winners were NTPC, IndusInd Bank, Sun Pharma, and Power Grid. In Asia, Seoul, Shanghai, and Hong Kong traded negatively while Tokyo traded well. Friday saw US markets rise significantly.
Brent fell 0.88 percent to USD 80.71 a barrel. Stock exchanges had a one-hour Diwali Muhurat trading session on November 12.
FIIs sold Rs 190.06 crore in stocks on Sunday, according to market data.
Rupee nearly flat against dollar
On Friday, a weak US dollar and buoyant domestic equity markets helped the rupee rise 1 paisa to 83.28.
Forex traders reported continued international capital outflows and increased oil prices pressuring the local currency. The rupee opened at 83.28 and fell to 83.49 against the dollar intraday at the interbank foreign exchange. The domestic currency peaked at 83.28. It closed at 83.28 per dollar, up 1 paisa.
Conclusion
The Indian stock market fell Monday due to sluggish global markets and foreign money withdrawals. The BSE Sensex lost 318.75 points and the Nifty 19442.75. Weak global markets, foreign fund withdrawals, and rising inflation drove the fall. The market’s future is uncertain, but volatility is expected. The collapse in Asian and US markets, foreign institutional investor withdrawals, and developing concerns like the Russia-Ukraine war, rising inflation, and rising interest rates contributed to the market’s decline. Even so, the market may have a solid foundation.
