MUMBAI: India’s financial markets experienced a notable decline, with the benchmark Sensex falling by 318 points, reflecting a broader trend of investor apprehension.
The BSE Sensex, which comprises 30 major companies, settled at 81,501.36, down 318.76 points or 0.39 per cent, while the NSE Nifty slipped below the critical 25,000 mark, closing at 24,971.30 after a decline of 86.05 points or 0.34 per cent.
The downturn can be attributed to several factors, primarily the sustained foreign institutional investor (FII) outflows and weak performance in global markets, particularly in the technology and automotive sectors.
Key players such as Mahindra & Mahindra, Infosys, and Tata Motors were among the most affected, contributing significantly to the indices’ declines. In contrast, stocks like HDFC Bank and Reliance Industries have shown resilience, indicating selective profit-taking among investors.
Analysts point to a negative bias in the market driven by fears of potential downgrades in earnings forecasts for FY25.
FII outflows
The sectoral responses were mixed; while IT and auto indices tumbled significantly, sectors like telecommunications and realty showed modest gains. This reflects a cautious approach among traders, influenced by persistent selling by foreign investors, which amounted to Rs1,748.71 crore on the previous trading day.
In the context of global market trends, Asian indices also saw declines, with Seoul, Tokyo, and Hong Kong closing lower. Conversely, Shanghai experienced a slight uptick. European markets continued to trade negatively, and US markets had similarly ended lower, impacting investor sentiment in Mumbai.
Ultimately, the recent performance of the Sensex and Nifty underscores a period of uncertainty and the potential for further fluctuations as market participants navigate domestic and international pressures.
As such, a vigilant, selective investment strategy may be prudent in the current climate, allowing investors to optimize their positions while mitigating risks associated with broader market volatility.
