Market Turmoil: Sensex and Nifty Hit by Metal Stock Slump

Sensex and Nifty indices experienced significant downturns on Friday, primarily due to declining metal stocks, foreign investment outflows, and subdued global signals. Despite some resilience shown by Bharti Airtel and Hindustan Unilever, the overall market sentiment was dampened by heavy selling by Foreign Institutional Investors.

The Indian stock market indices, Sensex and Nifty, faced a significant slump on Friday morning, chiefly attributed to a downturn in metal stocks, foreign fund outflows, and weak global cues. The BSE's Sensex fell dramatically by 1,207.14 points, settling at 80,082.82, while the NSE Nifty fell 367.9 points to 24,180.80.

Among the prominent losers in the 30-share Sensex pack were JSW Steel, Tata Steel, and IndusInd Bank. However, Bharti Airtel and Hindustan Unilever managed to buck the trend, emerging as the rare gainers amid a sea of losses. FIIs continued selling stocks extensively on Thursday, offloading equities worth Rs 3,560.01 crore.

The scenario was further complicated by a decline in India's industrial production growth to 3.5% for October 2024, and other factors like the Federal Reserve's anticipated interest rate decision added to the uncertainty. Market experts indicated that high valuations might prompt further FII selling, despite a potential market-supporting decline in inflation.

(With inputs from agencies.)