Mumbai. The decline in the local stock market continued for the second consecutive day on Tuesday. Due to all-round selling, BSE Sensex fell by more than 930 points while NSE Nifty fell below the level of 24,500. According to analysts, the domestic market was affected by capital withdrawal by foreign institutional investors and softness in global markets. Apart from this, due to rising bond yields in America and announcement of stimulus measures in China, FIIs are withdrawing money from the Indian market, which is having an adverse effect on the market.
BSE’s 30-share index Sensex closed at 80,220.72 points with a plunge of 930.55 points or 1.15 percent. At one time during trading it had fallen to 1,001.74 points. National Stock Exchange (NSE) index Nifty closed at 24,472.10 points with a huge fall of 309 points or 1.25 percent. At one time during trading it had gone as low as 24,445.80 points.
Among the 30 Sensex stocks, Mahindra & Mahindra, State Bank of India, Power Grid, Tata Steel, IndusInd Bank, Tata Motors, Larsen & Toubro, NTPC, Bajaj Finance and Reliance declined significantly. On the contrary, ICICI Bank, Nestle And Infosys shares remained in profit.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Amidst huge fluctuations, the sentiment of softness prevailed throughout the trading in the domestic market. “The biggest impact was on the shares of small and medium companies.” Nair said, “The sharp rise in bond yields in the US has reduced expectations of an aggressive policy rate cut by the US Federal Reserve. This also affected fund flows into emerging markets. This scenario of softness may persist in the short term due to the quarterly results of companies not being as per expectations.” According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 2,261.83 crore on Monday. Whereas domestic institutional investors (DIIs) bought shares worth Rs 3,225.91 crore.
The BSE Smallcap index comprising shares of small companies fell 3.81 per cent while the Midcap index comprising shares of medium companies fell 2.52 per cent. Jatin Gedia, technical research analyst at Sharekhan Bai BNP Paribas, said, “Nifty opened with a decline. The selling pressure increased as the business grew. “It has fallen below the 20-week average level (24,718), which is a sign of a weak trend.” Hyundai Motor India Ltd., the Indian unit of South Korean vehicle manufacturing company Hyundai. The stock market had a lackluster start. The company’s shares closed with a decline of more than seven percent against the issue price of Rs 1,960.
In other markets of Asia, South Korea’s Kospi, Japan’s Nikkei were in loss while China’s Shanghai Composite and Hong Kong’s Hang Seng were in profit. There was a declining trend during trading in the major markets of Europe. US markets were in loss on Monday. Global oil standard Brent crude rose 0.61 percent to $ 74.74 per barrel. BSE Sensex fell by 73.48 points on Monday while Nifty fell by 72.95 points.