Sensex dips 138 pts, extends losses to third day amid FII outflow

The Indian stock market continued its downward trend on Wednesday, with the benchmark BSE Sensex dropping 138.74 points, or 0.17 per cent, to close at 80,081.98. This marks the third consecutive day of losses, driven by profit-taking in auto, pharma, and capital goods sectors amid ongoing foreign fund outflows.

During a volatile trading session, the Sensex briefly dipped below the 80,000-mark, hitting an intraday low of 79,891.68. Similarly, the NSE Nifty fell by 36.60 points, or 0.15 per cent, to settle at 24,435.50.

Among the 30 stocks in the Sensex index, major laggards included Mahindra & Mahindra, Sun Pharma, Power Grid, NTPC, Adani Ports, Larsen & Toubro, ICICI Bank , and Titan. In contrast, Bajaj Finance stood out with nearly a 5 per cent increase after reporting a 13 per cent rise in consolidated net profit to Rs 4,014 crore for the second quarter ending September 2024. Other gainers included Tech Mahindra , Tata Consultancy Services, HDFC Bank , HCL Technologies, and Bajaj Finserv.

Foreign institutional investors (FIIs) sold off shares worth Rs 3,978.61 crore on Tuesday, according to exchange data. Meanwhile, domestic institutional investors (DIIs) purchased equities worth Rs 5,869.06 crore.

"The investor sentiment has turned gloomy, fueled by lukewarm earnings and a knee-jerk reaction from FIIs," said Vinod Nair, Head of Research at Geojit Financial Services. "However, mid and small-cap stocks are witnessing some bargain hunting following the recent declines, although the sustainability of this momentum-driven buying remains uncertain."

The rising yield on the US 10-year bond has added to the market's apprehension, indicating a slower pace of rate cuts by the Federal Reserve and fostering a risk-off sentiment towards emerging markets.

In regional markets, Seoul, Shanghai, and Hong Kong closed higher, while Tokyo ended lower. European markets were mixed, and US markets finished flat on Tuesday. Additionally, global oil benchmark Brent crude fell by 0.97 per cent to USD 75.30 per barrel.

The BSE benchmark had experienced a sharp decline of 930.55 points, or 1.15 per cent, to close at 80,220.72 on Tuesday, while the NSE Nifty had plunged by 309 points, or 1.25 per cent, to 24,472.10.