Stock markets fall for 2nd day on selling in IT banking shares, FII ouflows

MUMBAI — Benchmark indices Sensex and Nifty declined for a second day in a row on Friday due to selling in IT and banking shares amid foreign fund outflows and weak trends in the US markets.

The 30-share BSE Sensex fell by 106.62 points or 0.16 per cent to settle at 66,160.20. During the day, it declined by 388.17 points or 0.58 per cent to a low of 65,878.65.

The NSE Nifty declined 13.85 points or 0.07 per cent to finish at 19,646.05.

“The better-than-expected US Q2 GDP data, though positive, hindered the mood of the domestic market as it signalled the chances of another rate hike. The Fed chief’s comments about a data-centric approach without ruling out rate hikes added to the uncertainty.

“Furthermore, the reversal of the buying trend by FII and the rise in US bond yields contributed to market volatility. However, Asian markets remained largely positive due to the BOJ’s decision to retain the policy rate, contrary to speculation about the removal of stimulus measures,” said Vinod Nair, Head of Research at Geojit Financial Services.

From the Sensex pack, Bajaj Finserv, HDFC Bank, Tata Motors, HCL Technologies, Tata Consultancy Services, Axis Bank, Infosys, IndusInd Bank, Tech Mahindra and Maruti were the major laggards.

NTPC, Power Grid, Mahindra & Mahindra, JSW Steel, Bajaj Finance, ITC and Reliance Industries were among the gainers.

In the broader market, the BSE midcap gauge jumped 0.55 per cent and smallcap index climbed 0.49 per cent.

Among the indices, utilities rallied 2.61 per cent, power jumped 2.57 per cent, realty (1.92 per cent), services (1.01 per cent), FMCG (0.85 per cent) and commodities (0.56 per cent).

Teck fell by 0.69 per cent, IT declined by 0.67 per cent, oil & gas (0.28 per cent) and telecommunication (0.12 per cent).

“Markets traded in a narrow range and ended almost unchanged, in continuation of prevailing consolidation phase,” Ajit Mishra, SVP – Technical Research, Religare Broking Ltd, said.

A mixed trend on the sectoral front kept traders busy wherein realty and FMCG edged higher while pressure in IT and banks capped upside, Mishra said.

In Asian markets, Seoul, Shanghai and Hong Kong ended in the green while Tokyo settled lower. Equity markets in Europe were trading on a mixed note. The US markets ended in negative territory on Thursday.

Meanwhile, global oil benchmark Brent crude was trading 0.42 per cent lower at USD 83.89 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth INR 3,979.44 crore on Thursday, according to exchange data.

The BSE benchmark had plunged 440.38 points or 0.66 per cent to settle at 66,266.82 on Thursday, while the Nifty declined 118.40 points or 0.60 per cent to close at 19,659.90.