Indian equity markets opened lower on Tuesday with both Sensex and Nifty slipping due to ongoing foreign fund outflows and subdued corporate earnings. Bharti Airtel saw a notable decline despite a rise in profits, while NTPC and ICICI Bank showed gains.
Representational Pic
- Sensex drops over 300 points in early trade
- Bharti Airtel declines despite profit growth
- FIIs offload Rs 3,228 crore worth of equities
Equity markets opened lower on Tuesday, with both the BSE Sensex and NSE Nifty showing declines due to continued outflows from foreign funds and overall subdued corporate earnings.
ADVERTISEMENT
At the beginning of trading, the BSE Sensex dropped 322.24 points to 79,682.80, while the NSE Nifty fell by 86.55 points, reaching 24,252.60. This decline comes after recent signs of volatility in the markets, with investors maintaining caution amid global economic signals.
Among the 30 stocks on the Sensex, Bharti Airtel recorded a nearly 3% drop despite its impressive financial report showing a 168% year-on-year increase in consolidated net profit, amounting to ₹3,593 crore for the September quarter. This performance did little to bolster market sentiment. Other key lagging stocks included Mahindra & Mahindra, Sun Pharma, Tata Motors, JSW Steel, Infosys, and IndusInd Bank, further contributing to the dip.
Conversely, stocks like NTPC, ICICI Bank, Larsen & Toubro, and Nestle displayed resilience, trading positively in the face of broader market weakness.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,228.08 crore on Monday, as per exchange data, adding to a pattern of outflows that have pressured local equities recently. Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd, commented on the situation, explaining that, “Caution prevails due to upcoming US jobs data and the presidential election, alongside heavy FII outflows,” indicating that both domestic and international factors are impacting investor confidence.
In Asian markets, performance was mixed. Markets in Seoul and Shanghai traded lower, reflecting broader regional concerns, while Tokyo and Hong Kong registered gains, providing a contrast in sentiment across Asia. In the United States, markets closed positively on Monday, which may provide a limited buffer to declines in domestic markets.
The global oil benchmark, Brent crude, edged higher by 0.18%, trading at USD 71.55 per barrel, indicating a modest increase in oil prices that could affect import-driven economies, including India.
On Monday, the BSE Sensex had seen a robust recovery, closing up by 602.75 points or 0.76% at 80,005.04, while the Nifty rose 158.35 points or 0.65% to close at 24,339.15, underscoring the ongoing fluctuations in response to shifting investor sentiment and global cues.
(With inputs from PTI)
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
