Sensex, Nifty slip into pressure on sluggish cues

Highlights

Mumbai: Benchmark equity indices Sensex and Nifty declined on Wednesday, as selling pressure in banking and financial stocks amid a bearish trend in...

Mumbai: Benchmark equity indices Sensex and Nifty declined on Wednesday, as selling pressure in banking and financial stocks amid a bearish trend in global markets unnerved investors. Besides, weak earnings numbers and persistent foreign fund outflows hit market sentiments, traders said. The BSE Sensex tumbled 426.85 points or 0.53 per cent to settle at 79,942.18. During the session, the index hit a high of 80,435.61 and low of 79,821.99. The NSE Nifty dropped 126 points or 0.51 per cent to 24,340.85.

“In the near term, the market will be influenced by two factors - one positive and the other negative. The positive is the sharp decline in FII selling to just Rs548 crore on Tuesday. This is an indication that the FII tactical trade of ‘Sell India, Buy China’ is coming to an end. With more Domestic Institutional Investors (DII) and retail money coming to the market and FII selling tapering off, the market may get a near-term boost, aided by the festive mood. But the uptrend is unlikely to sustain since the Q2 earnings numbers indicate softness in earnings for FY25,” said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The BSE smallcap gauge jumped 1.54 per cent and midcap index ended marginally up by 0.04 per cent. %). “Global equities came under pressure on Wednesday as investors played safe ahead of the US Fed decision, US elections and US October jobs report,” sadi Deepak Jasani, head (retail research) at HDFC Securities.

“The domestic market remains cautious due to aggressive selling by FIIs. Positively, strong domestic inflows are supporting market resilience though volatility has markedly increased. Other EMs are also consolidating in anticipation of upcoming US economic data releases, elections, and the FOMC interest rate decision. Considering the weak Q2 domestic earnings and muted commentary, India's premium valuations are moderating,” Vinod Nair, head (research), Geojit Financial Services.