Indian stocks tumble as foreign investors pull funds
Foreign institutional investors extended their selling streak for the fourth consecutive session, offloading equities worth Rs 1,884 crore on Monday. Over the past four trading days since October 29, FIIs have dumped Rs 14,269 crore worth of Indian stocks. "FIIs' renewed selling is constraining the rally in the market," said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Higher valuations in India coupled with muted earnings growth are prompting foreign investors to focus on relatively cheaper markets with better earnings potential.
In contrast, domestic institutional investors stepped in as net buyers, purchasing shares worth Rs 3,516 crore during Monday's session, providing some support to the more
All major sectoral indices ended in the red except consumer durables, which gained 0.39%. The Nifty Metal index suffered the steepest decline, falling 1.44%, followed by auto stocks which dropped 0.86%. IT shares also faced pressure amid weak U.S. economic data and uncertainty around the Federal Reserve's next interest rate decision.
Power Grid Corporation emerged as the biggest Nifty loser, tumbling 3.13% after posting weaker-than-expected September quarter results. Other major laggards included Eternal, which fell 2.79%, Tata Motors dropping 2.53%, and Tata Steel declining 1.86%.
However, Titan Company bucked the trend, rising 2.28% on strong quarterly earnings, while Bharti Airtel gained 1.89% after reporting robust second-quarter results.
Asian markets traded lower on Tuesday, with South Korea's Kospi, Japan's Nikkei 225, and China's Shanghai Composite all settling in negative territory. European markets also traded lower, adding to the risk-off sentiment that weighed on Indian equities.
Market experts expect the downtrend to continue unless the Nifty breaks above 25,927, with immediate support seen near 25,500 levels. The broader market reflected the weakness, with the BSE midcap index falling 0.26% and the smallcap gauge dropping 0.69%.
Foreign institutional investors extended their selling streak for the fourth consecutive session, offloading equities worth Rs 1,884 crore on Monday. Over the past four trading days since October 29, FIIs have dumped Rs 14,269 crore worth of Indian stocks. "FIIs' renewed selling is constraining the rally in the market," said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Higher valuations in India coupled with muted earnings growth are prompting foreign investors to focus on relatively cheaper markets with better earnings potential
Foreign institutional investors extended their selling streak for the fourth consecutive session, offloading equities worth Rs 1,884 crore on Monday. Over the past four trading days since October 29, FIIs have dumped Rs 14,269 crore worth of Indian stocks. "FIIs' renewed selling is constraining the rally in the market," said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Higher valuations in India coupled with muted earnings growth are prompting foreign investors to focus on relatively cheaper markets with better earnings potential
Comments
Post a Comment