Equity Markets Slide Amid Foreign Fund Outflows and Weak Asian Cues

3 Oct 2023 , 03:42 PM

Equity benchmark indices see a decline due to ongoing foreign fund outflows and sluggish Asian market trends, with major laggards including Reliance Industries and HDFC Bank. At the time of closing Sensex traded at Rs 65,505 which is a 0.49% dip from the previous day’s close. The Nifty was trading at Rs 19,522 which is a 0.59% decline from the previous day’s close.

Notable losers among Sensex firms are Maruti, State Bank of India, JSW Steel, Kotak Mahindra Bank, Tata Steel, Tata Motors, ITC, NTPC, and Reliance Industries. However, Asian Paints, Hindustan Unilever, UltraTech Cement, and Mahindra & Mahindra are among the gainers in the market.

Tokyo and Hong Kong witness a decline in Asian markets, while Shanghai sees positive trading. In the US markets, most indices end on a positive note on Monday. Global oil benchmark Brent crude experiences a 0.89% decline, reaching USD 89.90 per barrel.

Foreign Institutional Investors (FIIs) have offloaded equities worth Rs 1,685.70 crore, with Foreign Portfolio Investors (FPIs) turning net sellers in September, withdrawing over Rs 14,767 crore from Indian equities. Markets were closed on Monday for Mahatma Gandhi Jayanti. Despite mixed cues for the October series, the market faces challenges such as sustained FII selling, a rising dollar index, and high US 10-year bond yields. On the positive side, a 5% crash in Brent crude prices encourages buying, contributing to a historical trend of October being a good month for markets.

For feedback and suggestions, write to us at [e-mail]