By Sensex and Nifty Experience Early Trade Decline Amid Weak Asian Markets and Fresh Foreign Fund Outflows; IT Stocks Offer Respite
On Friday, benchmark indices Sensex and Nifty saw a drop in early trade due to a weak trend in Asian markets and fresh foreign fund outflows. Moreover, the major index of Reliance Industries also added to the dip. In terms of individual stocks, Bajaj Finserv, Bajaj Finance, Mahindra & Mahindra, Reliance Industries, Titan, Asian Paints, Nestle, and Tata Steel were the major laggards while Infosys, Tata Consultancy Services, Wipro, Kotak Mahindra Bank, IndusInd Bank, Tech Mahindra, HCL Technologies, and Larsen & Toubro saw gains. The fall was cushioned by buying in IT counters to some extent.
In Asian markets, Seoul, Japan, Shanghai, and Hong Kong were trading lower, while the US markets ended higher on Thursday. Brent crude, the global oil benchmark, dipped 0.20 per cent to USD 75.76 per barrel. Foreign Portfolio Investors also offloaded equities worth Rs 995.01 crore on Thursday, following a day’s breather, according to exchange data.
On Thursday, the BSE benchmark fell 289.31 points or 0.50 per cent to settle at 57,925.28, while the Nifty dipped 75 points or 0.44 per cent to end at 17,076.90. The decline in Sensex and Nifty indicates a cautious market sentiment amid rising COVID-19 cases, inflation, and concerns over the economic recovery. The ongoing tussle between the US and China, geopolitical tensions, and high crude oil prices also continue to impact the stock markets.