MUMBAI: Strong selling by foreign funds on Tuesday pulled the sensex down for the third consecutive session, with the index closing 456 points lower at 72,944 points.
A slew of factors, from escalating geopolitical tensions in West Asia to a mixed set of economic numbers from China, spooked investors globally, also affecting the sentiment on Dalal Street, brokers and analysts said.
Foreign portfolio investors (FPIs) led the selling on Tuesday with a net outflow of Rs 4,468 crore. In two sessions, FPIs have net sold Rs 7,736 crore (about $900 million) worth of stocks, BSE data showed. On the NSE, Nifty closed 125 points lower at 22,148.
According to Siddhartha Khemka of Motilal Oswal Financial Services, a majority of the sectors on Dalal Street ended in the red on Tuesday. “Escalating tension in (West Asia) has turned sentiments sour leading to a rise in crude oil prices. A mixed set of economic data from China further dampened sentiments. Although better-than-expected China’s GDP number at 5.3% came in as a surprise, poor March activity data offset any positivity. Thus, global markets continue to remain weak.”
In Tuesday’s market, after a weak closing in Nasdaq on Monday night, the sentiment for IT stocks in India remained subdued. With Infosys closing 3.7% down and Wipro 2.3%, BSE’s IT index closed over 2% down. Although markets are closed for Ram Navami on Wednesday, the near-term sentiment is expected to be volatile with a negative bias until the Iran-Israel tension eases, Khemka said. Outside of India, US Federal Reserve chief Jerome Powell’s speech late on Tuesday will hold importance with the ongoing uncertain environment, he said.
A slew of factors, from escalating geopolitical tensions in West Asia to a mixed set of economic numbers from China, spooked investors globally, also affecting the sentiment on Dalal Street, brokers and analysts said.
Foreign portfolio investors (FPIs) led the selling on Tuesday with a net outflow of Rs 4,468 crore. In two sessions, FPIs have net sold Rs 7,736 crore (about $900 million) worth of stocks, BSE data showed. On the NSE, Nifty closed 125 points lower at 22,148.
According to Siddhartha Khemka of Motilal Oswal Financial Services, a majority of the sectors on Dalal Street ended in the red on Tuesday. “Escalating tension in (West Asia) has turned sentiments sour leading to a rise in crude oil prices. A mixed set of economic data from China further dampened sentiments. Although better-than-expected China’s GDP number at 5.3% came in as a surprise, poor March activity data offset any positivity. Thus, global markets continue to remain weak.”
In Tuesday’s market, after a weak closing in Nasdaq on Monday night, the sentiment for IT stocks in India remained subdued. With Infosys closing 3.7% down and Wipro 2.3%, BSE’s IT index closed over 2% down. Although markets are closed for Ram Navami on Wednesday, the near-term sentiment is expected to be volatile with a negative bias until the Iran-Israel tension eases, Khemka said. Outside of India, US Federal Reserve chief Jerome Powell’s speech late on Tuesday will hold importance with the ongoing uncertain environment, he said.