Key Highlights:
- Sensex fell 721 points, closing at a one-month low of 81,463.09.
- Bajaj Finance dropped 4.73 percent after weak Q1 results.
- FIIs sold stocks worth Rs 2,133 crore; global markets also weak.
Mumbai: Stock markets in India dropped for the second day in a row on Friday, with the Sensex crashing by 721 points and the Nifty falling by 225 points. The declines were driven by selling in financial, IT, and oil & gas stocks, along with continuous foreign investor outflows.
The BSE Sensex ended the day at 81,463.09, down 0.88 percent. Earlier in the day, it had fallen as much as 786 points. The Nifty 50 closed at 24,837, its lowest in a month, losing 0.90 percent.
Bajaj Finance Leads the Fall
Among major stocks, Bajaj Finance dropped 4.73 percent after its June quarter results failed to impress investors. Other major losers included Power Grid, Infosys, Tech Mahindra, Bajaj Finserv, Trent, Tata Motors, NTPC, and Adani Ports.
On the other hand, Sun Pharma and Bharti Airtel managed to post gains, providing some relief.
Foreign Investors Pull Out, DIIs Buy
Data showed that Foreign Institutional Investors (FIIs) sold shares worth Rs 2,133.69 crore on Thursday. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers, purchasing stocks worth Rs 2,617.14 crore.
Experts say that elevated stock valuations, weak corporate earnings, and global uncertainty made FIIs cautious, leading to selling pressure.
Weak Global Cues Weigh on Market
Markets in Asia and Europe also traded in the red. Indices like Japan's Nikkei, China’s Shanghai Composite, and Hong Kong’s Hang Seng all closed lower. Only South Korea’s Kospi ended in the green.
European markets were also down, while US markets closed mixed on Thursday.
Other Developments: India-UK Trade Deal Signed
Despite the stock market gloom, India and the UK signed a landmark free trade agreement on Thursday. The deal will allow 99 percent of Indian exports to the UK to enter duty-free, while reducing tariffs on UK products like cars and whisky. The goal is to double bilateral trade to USD 112 billion by 2030.
Oil Prices Rise Slightly
Brent crude, the global oil benchmark, rose 0.32 percent to USD 69.40 per barrel, adding to concerns for oil-importing countries like India.
Overall, market sentiment remains weak as global uncertainties and foreign fund withdrawals continue to weigh heavily on investor confidence.
(With PTI Inputs)
