India’s benchmark stock indices slumped for the sixth consecutive session, closing at multi-month lows as persistent market pressures weighed on investor sentiment.
The Sensex dropped by 110.64 points, or 0.14%, closing at 77,580.31, while the Nifty fell by 26.35 points, or 0.11%, ending the day at 23,532.70. Sectoral performance was mixed, with indices for Nifty Bank, Auto, and Media showing gains, while FMCG, Pharma, and PSU Bank sectors were in the red.
HUL, BPCL, Tata Consumer, Nestle, Britannia were among the major losers on the Nifty, while gainers were Eicher Motors, Hero MotoCorp, Reliance Industries, HDFC Life and Kotak Mahindra Bank.
Amol Athawale, VP-Technical Research, Kotak Securities said that the short-term traders should remain cautious and be very selective as there is a risk to get trapped at lower levels.
The sustained decline in stock indices has been attributed to several factors, including weaker-than-expected Q2 earnings reports, consistent outflows from foreign funds, and rising domestic inflation across both retail and wholesale levels. According to ICRA Analytics, the downward pressure on Indian equity markets is largely driven by foreign portfolio investors’ persistent selling.
The domestic retail inflation rate in October surpassed the Reserve Bank of India’s (RBI) upper tolerance level, further dampening market sentiment. Additionally, the rupee’s recent decline against the US dollar has exacerbated these losses, contributing to continued volatility in the equity market.