Market Turmoil: Sensex and Nifty in Red as Global Factors Weigh

The stock market ended in negative territory for the fourth day, with Sensex dropping 662.81 points and Nifty 218.60 points. Key reasons include rupee depreciation and poor Q2 results. FIIs have sold aggressively, though DIIs have largely compensated for the outflow.

Domestic stock markets extended their losing streak for a fourth day, as both benchmark indices posted substantial declines. The Sensex plummeted by 662.81 points to settle at 79,402.29, while the Nifty tumbled 218.60 points, closing at 24,180.80. A broad-based sell-off across sectors was evident as only 12 Nifty-listed stocks advanced, leaving 38 in the red.

The session's top performers included ITC, Axis Bank, Bharat Electronics Limited (BEL), Britannia, and Hindustan Unilever. In stark contrast, shares of IndusInd Bank, Adani Enterprises, Bharat Petroleum Corporation Limited (BPCL), Shriram Finance, and Coal India suffered notable losses. According to VLA Ambala, Co-Founder of Stock Market Today, multiple issues contributed to the bearish sentiment that prevailed.

Ambala noted, "The depreciation of the Indian rupee against the dollar is undermining India's purchasing power and global standing. Coupled with lackluster Q2 results that missed GDP growth expectations, investor confidence remains shaky." She further highlighted the aggressive selling by Foreign Institutional Investors (FIIs), who have offloaded over Rs 1 lakh crore in the past 30 days. Domestic Institutional Investors (DIIs), however, have stepped in, purchasing Rs 92,931.54 crore in equities over the same period. This tug-of-war has led to a 7% decline in the Nifty50, with more turbulence expected ahead.

Market volatility, largely driven by FII activities, has heightened uncertainties for mid-term investors. Ambala advised investors to proceed with caution, suggesting staggered buys near the 50-week EMA during significant dips, as the market prepares for potential further shifts in the coming sessions. (ANI)

(With inputs from agencies.)