FINAL TRADE: Sensex sinks 680 pts, Nifty hits 24,150 as markets slide for fifth session amid earnings slump and foreign outflows

Indian benchmark indices fell sharply on Friday, with the Sensex down 684 points at 79,380.81 and the Nifty slipping 253 points to 24,145. The market’s fifth consecutive loss was driven by underwhelming earnings reports and continued foreign outflows, with IndusInd Bank and NTPC leading the declines following disappointing Q2 results.

Only 509 stocks advanced, while 2,889 declined, reflecting broader market pessimism.

This continued downtrend has been attributed to weak corporate earnings and sustained foreign outflows, which have dented investor sentiment.

The market outlook remains cautious, with investors closely watching foreign flows and earnings reports for more clarity on potential recovery triggers.

Santosh Meena, Head of Research at Swastika Investmart asserted that the Indian equity market is experiencing a sharp correction due to multiple factors. The primary driver is foreign institutional selling, driven by valuation concerns and the increased attractiveness of the Chinese market. Another major factor is disappointing earnings reports from Indian companies, especially in the consumption sector, which signal an economic slowdown, particularly in urban consumption.

This slowdown is also impacting financial stocks. Additionally, we are now seeing selling pressure from many HNIs and retail investors, who haven’t experienced a correction of this depth for some time.Nifty is likely to test its 200-DMA around the 23400 level, with a potential rebound expected after the October expiry. However, continued pressure is anticipated in the midcap and small-cap sectors. Investors should consider using this dip as an opportunity to buy quality largecap stocks, especially in the financial sector, where valuations remain attractive.