FIRST TRADE: Sensex drops 150 pts, Nifty down 55 pts as market losses extend
In early trading, the Sensex dipped by 250 points, standing at 78,550 in the pre-open session. Nifty followed suit, losing 79 points and staying below the 24,000 mark, currently at 23,900.
Indian equities faced another session of declines, marking a second consecutive day of losses, with the BSE Sensex dropping over 150 points to 78,599, while the Nifty50 fell 54.80 points to 23,940 as of mid-morning on Tuesday. Index heavyweights, including HDFC Bank, Reliance Industries, and Infosys, drove down the market following the previous day’s largest dip in a month, amid rising volatility and anticipation over the U.S. presidential election outcome.
HDFC Bank, Adani Ports, ITC, and Asian Paints saw losses in early trading, while stocks such as JSW Steel, Tata Motors, and HCL Tech showed gains. IRCTC shares declined by three per cent after reporting a modest four per cent year-on-year rise in net profit to Rs 308 crore, while Raymond shares surged by 4.5 per cent following a twofold increase in its quarterly profit to Rs 59 crore, driven by real estate and engineering growth.
Globally, market sentiment remains tepid. Asia-Pacific markets traded flat as investors braced for the election results, with Japan’s Nikkei gaining 1.3 per cent. Oil prices saw slight increases following an OPEC+ production decision delay, with Brent crude trading at $75.22 per barrel.
Sectorally, financial services, FMCG, and realty sectors opened in the red, while auto, IT, and metal sectors recorded gains. Analysts suggest that domestic economic factors may be intensifying market challenges. "India’s underperformance relative to global indices signals the impact of internal issues on valuations," noted Dr V K Vijayakumar of Geojit Financial Services, adding that the Nifty 50’s earnings forecast for FY25 has been revised down significantly, fueling foreign outflows.
On the institutional front, FIIs sold equities worth Rs 4,330 crore on Monday, while DIIs bought stocks worth Rs 2,936 crore. In the currency markets, the Indian rupee opened weaker, trading at 84.13 against the U.S. dollar.
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