Equity markets see heightened volatility, Sensex falls 150 points, Nifty declines 37 points

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Equity markets witnessed significant volatility in early trading on Monday, with benchmark indices Sensex and Nifty both facing downward pressure due to weak trends in Asian markets, particularly amid a sell-off in key stocks like Infosys and ICICI Bank.

The 30-share BSE Sensex initially opened higher but quickly succumbed to selling pressure, dropping by 151.36 points or 0.19 percent, to settle at 81,557.76 points in the early trade. Similarly, the broader NSE Nifty also opened with gains but quickly turned negative, losing 37.45 points or 0.15 percent, reaching 24,640.35 points.

Stocks from the Sensex pack that weighed down the index included Hindustan Unilever, Nestle India, UltraTech Cement, Infosys, Asian Paints, Mahindra & Mahindra, and Tata Steel. These blue-chip stocks contributed to the early market pullback. On the other hand, stocks like Larsen & Toubro, Kotak Mahindra Bank, Tech Mahindra, Sun Pharmaceuticals, HDFC Bank, and NTPC were among the major gainers, providing some relief to the overall market sentiment.

A key factor contributing to the volatility was fresh foreign institutional investor (FII) outflows, which further dampened investor sentiment. According to exchange data, FIIs sold equities worth Rs 1,830.31 crore on Friday, following a sustained period of heavy buying. This reversal in foreign investment flows was seen as a significant factor leading to the downward movement in markets.

Meanwhile, the broader Asian markets displayed a mixed picture. Major indices like Seoul, Hong Kong, and Shanghai were in the red, reflecting a cautious market tone, while Tokyo bucked the trend, moving higher. Deepak Jasani, Head of Retail Research at HDFC Securities, noted that investors were particularly cautious due to political instability in South Korea and awaited fresh stimulus measures from China. He also pointed out that central bank outcomes from Australia, the European Central Bank (ECB), Canada, Switzerland, and Brazil were expected this week, which could have further implications for global markets.

In the global markets, US indices ended the week on a mixed note on Friday, reflecting a broader lack of direction. Brent crude, the global oil benchmark, rose by 0.41 percent to USD 71.41 per barrel, adding some pressure to the overall market dynamics.

The overall market movement on Friday saw the Sensex decline by 56.74 points or 0.07 percent to end at 81,709.12 points, while the Nifty slipped 30.60 points to close at 24,677.80 points.

As per PTI, analysts expect the markets to remain volatile in the short term, with investors keeping a close eye on global cues and domestic economic data.

Keywords: Equity markets, Sensex, Nifty, market volatility, foreign institutional investors, Infosys, ICICI Bank, Asian markets, FII outflows, Brent crude, global oil prices.

(With inputs from PTI)