Sensex falls 137 points under selling pressure to close in red for the sixth consecutive month

Business

Foreign institutional investors continued their selling spree, selling a net 5,255.75 crore of shares on Thursday

Foreign institutional investors continued their selling spree, selling a net 5,255.75 crore of shares on Thursday

The Sensex came under selling pressure to end in the red for a sixth straight session on Friday on risk aversion amid unabated selling by overseas institutional investors and inflation concerns.

The 30-stock BSE benchmark erased all intraday gains, falling 136.69 points, or 0.26%, to 52,793.62. For the day, it rose 855.4 points, or 1.61%, to 53,785.71.

On similar lines, the broader NSE Nifty fell 25.85 points, or 0.16%, to settle at 15,782.15.

Among the Sensex firms, the biggest laggards were State Bank of India, ICICI Bank, NTPC, Bharti Airtel, Bajaj Finserv, Axis Bank and Maruti.

In contrast, Sun Pharma, M&M, ITC, Hindustan Unilever, Titan and Reliance were among the winners.

Markets in Asia trended higher with Tokyo, Hong Kong, Seoul and Shanghai all making significant gains.

Stock markets in Europe traded higher in the afternoon session.

The stock exchanges in the US closed on Thursday with mixed notes.

Meanwhile, international oil benchmark Brent crude rose 1.09% to $108.6 a barrel.

Foreign institutional investors continued their selling spree, selling shares for a net 5,255.75 crore, according to stock market data on Thursday.

“This is the headwind season for markets. High inflation in the US and the restrictive Fed have pushed up bond yields and hurt equity markets.

“FPIs continue their selling spree and continue to influence sentiment. To top it off, April CPI inflation has hit a worryingly high level of 7.79 percent, leaving the RBI no choice but to turn hawkish in upcoming policy meetings,” said VK Vijayakumar , Chief Investment Strategist at Geojit Financial Services.

Mr. Vijayakumar added that the positive side is that all this bad news is already known and is being considered by the market.

India’s headline inflation galloped for the seventh straight month, hitting an 8-year high of 7.79% in April on rising food and fuel prices, increasing the likelihood of an RBI rate hike early next month to tame prices.

Leave a Reply

Your email address will not be published. Required fields are marked *