Indian stock market witnessed a prolonged decline, marking the fifth consecutive session of losses, with banking and IT shares leading the way, all against the backdrop of ongoing global turbulence.
Foreign institutional investors (FIIs) significantly impacted the market, selling Indian company stocks worth ₹13,312.21 crore while purchasing stocks amounting to ₹9,075.61 crore. The net result was an outflow of ₹4,236.60 crore, according to data from the National Stock Exchange (NSE). On the other hand, domestic institutional investors (DIIs) exhibited a contrasting pattern by buying equities worth ₹9,638.55 crore and offloading shares worth ₹6,069.19 crore, resulting in a net inflow of ₹3,569.36 crore, as per the exchange data.
The BSE Sensex, a benchmark index comprising 30 major stocks, witnessed a substantial decline of 522.82 points, or 0.81%, concluding at 64,049.06 points. During the day, it experienced an even steeper drop of 659.72 points, or 1.02%, reaching a low of 63,912.16 points. Similarly, the NSE Nifty, another significant market index, declined by 159.60 points, or 0.83%, closing at 19,122.15.
Over the course of the last five days, the Sensex has registered a steep fall of 2,379.03 points, equivalent to a 3.58% decline. This period has also seen a substantial erosion in the market capitalization of BSE-listed companies, with a total loss of ₹14.60 lakh crore, bringing the market capitalization to ₹3,09,22,136.31 crore.
In the broader market, the BSE smallcap index observed a 0.77% decline, while the midcap index fell by 0.52%. Notably, the sectoral indices portrayed a similar downward trend, with the technology sector experiencing a notable drop of 1.39%. The telecommunications and utilities sectors followed closely, recording declines of 1.29% and 1.25%, respectively. The IT sector also felt the impact, with a 1.13% decline, while power, financial services, realty, and bankex indices faced declines ranging from 0.70% to 1.09%. The sole sector showing gains was the metal sector.
On the currency front, the Indian rupee experienced some fluctuations during the day’s trading. It initially strengthened against the US dollar but later paired those gains, eventually closing 2 paise lower at 83.18 against the US dollar. The rupee’s performance was influenced by the weakness seen in most of its Asian counterparts, especially as the offshore Chinese yuan slipped by 0.17% to 7.32 against the US dollar.
The interbank foreign exchange market saw the rupee opening stronger by 8 paise at 83.08. Throughout the trading session, it fluctuated between its peak of 83.08 and its lowest point at 83.19 against the US dollar. Earlier in the week, the rupee had closed 4 paise lower at 83.16 against the US dollar.
Despite the challenges, the rupee found some support in the form of softening crude oil prices and foreign equity investors’ buying activity. These factors provided some respite for the Indian currency amidst a complex global economic landscape.
