MUMBAI: The stock market took a sharp hit on Tuesday, with the Sensex plunging 930.55 points to close at 80,220.72, its lowest level in over two months. The Nifty also fell below the crucial 24,500 mark, dropping 309 points to settle at 24,472.10 amid a broad sell-off across sectors and heavy foreign investor outflows.
Second day of losses
This marks the second consecutive day of losses for the indices. During intraday trading, the Sensex slumped by 1,001.74 points, while Nifty hit a low of 24,445.80.
Weak earnings growth and sluggish global cues further dented investor sentiment, with rising US bond yields and policy shifts in China fueling concerns over foreign institutional investor (FII) outflows.
From the 30-stock Sensex, Mahindra & Mahindra, State Bank of India (SBI), Power Grid, Tata Steel, and Reliance Industries were the top losers, while ICICI Bank, Nestle, and Infosys managed to close in the green.
Bearish sentiment
Bearish sentiment continued to dominate amid heightened volatility, with small and midcap stocks suffering the most. “Rising US bond yields signal diminished expectations for aggressive rate cuts by the Fed, impacting fund flows to emerging markets,” an analyst noted.
FIIs sold equities worth Rs2,261.83 crore on Monday, while domestic institutional investors (DIIs) purchased stocks worth Rs3,225.91 crore, exchange data showed.
Sector-wise, the BSE Industrials index tumbled 3.51 per cent, followed by losses in realty, metal, and power stocks. Smallcap and midcap indices also witnessed significant declines, falling 3.81 per cent and 2.52 per cent, respectively.
Overall, 3,428 stocks declined, while only 559 advanced, and 71 remained unchanged. On the technical front, Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, noted that Nifty’s slip below its 20-week average (24,718) indicates further weakness ahead.
Hyundai Motor closes lower
Meanwhile, shares of Hyundai Motor India Ltd made a disappointing market debut, closing over 7 per cent lower than its issue price of Rs1,960.
In global markets, Asian indices offered mixed cues, with Seoul and Tokyo ending lower while Shanghai and Hong Kong gained.
European stocks were trading in the red, and US markets closed mixed on Monday. Brent crude prices edged up 0.61 per cent to $74.74 per barrel.
