Sensex, Nifty further tumble 1% each on unabated FII outflows

Highlights

Sensexy gyrates 1,836pts; FPIs continue to divert funds from India to the dragon nation that implementing fiscal stimulus; West Asia crisis dampens investor sentiment

Mumbai: Stock markets slid for the fifth day in a row on Friday with Sensex tumbling 808 points in a topsy-turvy session as FMCG, auto and energy shares succumbed to intense selling and foreign fund outflows triggered by escalating tensions in West Asia.

The BSE Sensex tumbled 808.65 points or 0.98 per cent to settle at a three-week low of 81,688.45. The benchmark hit a low of 81,532.68 and a high of 83,368.32 during the day, reflecting a wild swing of 1,835.64 points. The NSE Nifty slumped 235.50 points or 0.93 per cent to 25,014.60. Intra-day, it hit a low of 24,966.80 and a high of 25,485.05. On weekly basis, Sensex tanked 3,883.4 points or 4.6 per cent and Nifty by 1,164.35 points or 4.5 per cent in just four sessions, which was their worst week in past two years.

“Nifty ended lower for the fifth consecutive session on Friday. It recorded its worst week in over two years amid rising tensions in the Middle East,” said Deepak Jasani, head (retail research), HDFC Securities.

A total of 2,387 stocks declined while 1,563 advanced and 104 remained unchanged.

Vinod Nair, head (research), Geojit Financial Services, said: “The bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on recovery strategy.”

The BSE midcap gauge declined 0.94 per cent and smallcap index went lower by 0.80 per cent.

“The increase in geopolitical tensions between Israel and Iran weighed on risk assets. In global news, mounting geopolitical tensions have contributed to a shaky start in October for the stock market,” added Shrikant Chouhan, head (equity research), Kotak Securities.

Among the indices, realty fell the most by 1.60 per cent. Auto (1.50 per cent), telecommunication (1.25 per cent), utilities (1.20 per cent), consumer discretionary (1.18 per cent) and commodities (1.14 per cent) were among losers. IT emerged as the only gainer.

“The last three days have witnessed huge FII selling of Rs 30,614 crore in the cash market. FIIs are moving money from expensive India to cheap Hong Kong on expectations that the monetary, and fiscal stimulus being implemented by the Chinese authorities will stimulate the Chinese economy and improve the earnings of Chinese companies.