Selling by foreign institutional investors affected the market, which fell for the fifth day.
Selling by foreign institutional investors affected the market, which fell for the fifth day.
Benchmark indices continued their downtrend for the fifth consecutive session on Thursday, May 12, 2022, with the Sensex falling nearly 817 points in early trade tracking weak global trends and selling in major indexes Reliance Industries and HDFC Bank.
Selling by foreign institutional investors also weighed on the sentiment.
The 30-share BSE Sensex was trading at 53,271.61, down 816.78 points. NSE Nifty closed 234.05 points lower at 15,933.05.
UltraTech Cement, Tata Steel, Bajaj Finance, Mahindra & Mahindra, IndusInd Bank, HDFC Bank, Bajaj Finserv and Larsen & Toubro were the laggards among Sensex firms.
In contrast, Power Grid emerged as the sole beneficiary.
Elsewhere in Asia, markets in Tokyo, Hong Kong and Seoul were trading lower, while Shanghai traded marginally higher.
Stock exchanges in the US closed with a fall on Wednesday.
Deepak Jasani, head of retail research, HDFC Securities, said: “Asian stocks fell on Thursday due to a pick-up in US inflation and a sharp fall on Wall Street.”
Meanwhile, international oil benchmark Brent crude fell 1.19 per cent to $106.22 a barrel.
Continuing with their sell-off, foreign institutional investors sold shares worth Rs. 3,609.35 crore on Wednesday, May 11, according to stock exchange data.
In the previous trade, the BSE Sensex closed at 54,088.39, down 276.46 points or 0.51 per cent. The NSE Nifty closed at 16,167.10, down 72.95 points or 0.45 per cent.
‘Worry over rising interest rates’
Mohit Nigam, PMS Head, Hem Securities, said, “Indian markets are witnessing turmoil as investors worry about rising interest rates, fears about slowing economic growth and additional tightening measures in China.”
Inflation continues to be a major headwind for the markets, said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Consumer inflation in the US is approaching 8.3 per cent in April, reinforcing market concerns about aggressive rate hikes by the Fed and the prospect of a US recession in 2023,” he said.
Even though buying by domestic institutional investors (DIIs) is higher than selling by foreign institutional investors (FIIs), it is not enough to lift the sentiment in the market as macro headwinds are strong, Mr Vijayakumar said.