Business
Indices see steepest fall since Sept 25 despite rate cut boost
Despite strong domestic growth data and a quarter percentage-point rate cut Friday, near-term sentiment remains weighed down by global rate worries, persistent selling by overseas funds, and continued pressure on the rupee.
On Monday, the Sensex fell 0.71% or 609.68 points to close at 85,102.69, while the Nifty briefly dipped below 26,000, sliding 1% intraday before ending 0.86% lower or 225.90 points at 25,960.55. Market breadth was sharply negative.
Of the 4,485 stocks traded on BSE, 843 advanced while 3,460 declined. BSE market capitalisation fell 1.24%, dropping to ₹482 lakh crore from ₹488 lakh crore on December 5.
“The rupee’s downward spiral past the 90-per-dollar mark, coupled with persistent foreign fund outflows this month, has precipitated volatility,” said Prashanth Tapse, senior V-P (Research), Mehta Equities. With the US Fed’s rate decision due on December 10, investors are unlikely to take aggressive positive bets in the near term, he added.
FII EXITS
Analysts said foreign investors, generally on the sidelines in November, have turned sellers for seven consecutive sessions. According to Siddarth Bhamre, head—Institutional Research, Asit C Mehta, the absence of any meaningful positive trigger has prevented the market from building sustained upward momentum.
All sectoral indices ended in the red, with realty down nearly 3.5%, PSU banks losing 2.8%, and media falling 2.7%. Among Nifty stocks, the biggest losers were InterGlobe Aviation (-8.62%), Bharat Electronics (-4.92%), JSW Steel (-3.71%), and Nestle India (-2.56%). Tech Mahindra (1.22%), Wipro (0.35%), and HCL Technologies (0.12%) were the few gainers.
The India VIX, the market’s fear gauge, rose 7.85% to 11.13. In the broader market, the Nifty Midcap 150 declined 1.70%, while the Nifty Smallcap 250 slipped 2.27%. Foreign portfolio investors were net sellers of Rs 779.94 crore on Monday, while domestic institutional investors bought shares worth Rs 2,459 crore.
