Indian stock markets fell on Thursday, tracking a selloff in global stocks on fears over escalating tensions in the Middle East.
Elevated US yields could trigger further foreign investors selling in Indian equities, said analysts.
Foreign institutional investors (FIIs) on Thursday sold stocks of Indian companies worth ₹11,195.58 crore and bought stocks for ₹10,102.11crore, resulting in an outflow of ₹1,093.47 crore, according to NSE data.
Domestic institutional investors (DIIs) bought equities worth ₹7,249.75 crore and offloaded shares worth ₹6,513.60 crore, resulting in an inflow of ₹736.15 crore, the exchange data showed.
The BSE Sensex lost 0.38% to end at 65,629.24. The NSE Nifty 50 index settled 0.24% lower at 19,624.70.
Both the benchmarks lost 0.81% each during the session.
Siddhartha Khemka, head – retail research at Motilal Oswal Financial Services Ltd, said: “Global headwinds continued to impact domestic equities. Nifty opened lower but managed to recover some of the losses to finally close with 46 points at 19625 levels. Among sectors, Auto, FMCG and Consumer Durable were major gainers today.”
“US Fed chair Jerome Powell’s speech late Thursday would be key trigger for the market as it will provide some clarity over future interest rate hike. This along with the escalating situation in middle east, would keep market sentiments subdued,” added Khemka.
Metals shed 0.88% and was the top sectoral loser. Banks closed 0.31% lower, after losing 0.75% in intraday trade.
Auto index added 0.50%. Consumer index rose 0.14%.
“Markets remained vulnerable amidst simmering Middle-East geopolitical tensions. Pessimism still continues to run high amidst negative catalysts like deepening Israel-Palestine conflict, uninspiring Q2 from corporate India Inc so far, the 10-year US Treasury yields spiking to 4.87%, rising expectations of one more interest rate increase from the Fed, and anxiety ahead of Powell’s speech later today,” said Prashanth Tapse, senior VP (research), Mehta Equities Ltd.
“For Nifty, the support is placed at 19501 mark, while any strength can be seen only after index breaks the 19887 hurdle,” added Tapse.
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Updated: 19 Oct 2023, 07:20 PM IST