The Indian market recorded a fall for the second day in a row, with the Sensex reaching 55,300 points and the Nifty 50 below the 16,500 level. In two trading sessions, approx. The assets of 3.54 lakh crore investors have been wiped out on the BSE. Simultaneously, the market has retreated from some of the strong gains in the past week as traders focus on US Federal Reserve policy results and key quarterly earnings. Markets await another rate hike from the Fed to beat multi-decade high inflation. Besides, the fall in domestic equities can also be attributed to outflow of foreign funds as FPIs have emerged as net sellers so far this week. The rupee was flat against the US dollar.
On Tuesday, the Sensex closed at 55,268.49, down 497.73 points or 0.89%. The Nifty 50 closed down 147.15 points or 0.88% at 16,483.85. IT stocks were hit the most, while bankingAuto, capital goods and consumer durables stocks also pulled down the performance.
of BSE Market evaluation is around 257.55 lakh crore – below 3,53,939.83 crore approx from last Friday’s valuation 261.08 lakh crore.
From July 22 to Tuesday, the Sensex has fallen by about 804 points, or 1.43%. Whereas Nifty 50 lost around 236 points i.e. 1.43%.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Concerns over the global economic slowdown intensified as global corporate heads continued their trend of lowering future projections. is expected to sustain aggressive rate growth of bps, especially weighted on bearish fears in western markets. Even though domestic market is showing strength, spillover effect from western market is inevitable.”
Meanwhile, the rupee stabilized at 79.78 against the US dollar at the interbank forex market on firm crude oil prices, foreign fund outflows and expectations of a rate hike from the Fed.
Jatin Trivedi, VP Research Analyst, LKP Securities said, “The rupee witnessed a range bound session with flat trades around 79.80 as dollar index held rates above $106 and showed some recovery at 106.80. Looking ahead signals Still to go as the FOMC two-day meeting begins. Today and the rupee will pick up momentum based on Fed Chairman Jerome Powell’s remarks. Rupee range can be seen at 79.70-79.95.”
Further, NSDL data shows that from July till now, FPI outflows have now become 91 crores in the equity market, while the sell-off is near 959 crore in the debt market. Foreign investors pulled out 1,250 crore more from debt-VRR market 137 crore from hybrid devices. Keeping this in mind, the total FPI outflow in the Indian market is now 2,436 crore this month till July 26.
Till July 22, FPIs were net buyers with inflows 1,099 crore in the stock market. Meanwhile, from July 1 to July 22, FPI inflows were on 870 crores in the total Indian market (including equity, debt, debt-VRR and hybrid markets).
Last week, both Sensex and Nifty 50 jumped over 4%.
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