MUMBAI: The equity benchmark BSE Sensex plummeted nearly 700 points on Tuesday, falling below the 79,000 mark, as it extended its losses for the second consecutive day.
The decline was driven by heavy selling in HDFC Bank, SBI, and ITC, alongside renewed foreign capital outflows.
The 30-share BSE Sensex dropped 692.89 points, or 0.87 per cent, to settle at 78,956.03. During intraday trading, it sank 759.54 points, or 0.95 per cent, to a low of 78,889.38. Similarly, the NSE Nifty declined by 208 points, or 0.85 per cent, closing at 24,139.
Among the Sensex components, HDFC Bank saw a decline of over 3 per cent, with Tata Steel, Bajaj Finance, State Bank of India (SBI), Tata Motors, Power Grid, and JSW Steel also trailing.
Gainers
On the other hand, Titan, HCL Tech, Nestle, Sun Pharma, Reliance, and Mahindra & Mahindra were the session’s gainers.
“The MSCI rebalancing is playing out as expected, causing mixed reactions in the market—while some stocks are gaining, others are experiencing profit-booking. HDFC Bank, in particular, is under pressure despite previous outperformance, as the phased MSCI inflows have led to investor profit-taking,” Santosh Meena, Head of Research at Swastika Investmart Ltd was quoted as saying.
Other markets
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong closed in positive territory. European markets were mostly trading in the green, while US markets ended with mixed results on Monday.
Foreign Institutional Investors (FIIs) resumed selling on Monday, offloading equities worth Rs4,680.51 crore, as per exchange data.
The weightage of HDFC Bank, India’s largest private lender, in the MSCI Global Standard Index is set to increase over two phases, contrary to expectations of a single adjustment.
Inflation eases
Meanwhile, retail inflation eased to a five-year low of 3.54 per cent in July, mainly due to lower food prices and base effects, according to official data released on Monday. India’s industrial production growth also slowed to a five-month low of 4.2 per cent in June 2024, with the manufacturing sector underperforming, though power and mining continued to show strength.
Global oil benchmark Brent crude edged down by 0.35 per cent to $82.01 per barrel.
On Monday, the BSE Sensex had closed 56.99 points lower, or 0.07 per cent, at 79,648.92, while the Nifty dipped 20.50 points, or 0.08 per cent, to 24,347.
