Mumbai, Jun 23 (PTI) Benchmark stock indices Sensex and Nifty declined more than 1 per cent on Tuesday following FII outflows and heavy selling in IT and metal shares, mirroring losses in global stocks.
The 30-share BSE Sensex dropped by 893.39 points, or 1.16 per cent, to settle at 76,200.68. During the day, it plunged 1,011.56 points, or 1.31 per cent, to 76,082.51.
The 50-share NSE Nifty dropped 278.80 points, or 1.16 per cent, to end at 23,824.10.
Weak global trends, concerns over the sustainability of the AI-driven rally, and profit-booking after recent sharp gains dragged Indian stocks lower, according to analysts.
Sensex and Nifty had rallied more than 4 per cent since June 11, logging gains in six of the past seven sessions.
Among the 30-Sensex firms, Infosys and Tata Consultancy Services declined over 3 per cent each. Bharat Electronics, Tata Steel, Adani Ports, Eternal, HCL Tech, and State Bank of India were also among the laggards.
Power Grid, Axis Bank, Sun Pharma, and Maruti Suzuki were the winners.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 635.91 crore on Monday, according to exchange data.
“Indian equity markets snapped their recent oil-driven rally and declined sharply alongside global peers as a broad technology-led selloff weighed on sentiment.
“Losses were led by the IT sector, which declined more than 2 per cent, while a weaker rupee and growing expectations of further US monetary tightening added to investor caution and weighed on overall sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended sharply lower. The Kospi tanked 10 per cent.
European markets were trading in negative territory.
“The decline was largely influenced by weakness across Asian markets, which also weighed on U.S. futures amid concerns over the sustainability of the AI-driven rally, dampening overall market sentiment. Meanwhile, the India VIX moved higher toward the 14 mark, while the rupee weakened following the day’s market pressure,” Ajit Mishra – SVP, Research, Religare Broking Ltd.
Broader markets also closed lower as the BSE MidCap Select index dropped 0.99 per cent and SmallCap Select index by 0.50 per cent.
Among sectoral indices, Metal tanked the most by 3 per cent, followed by IT (2.24 per cent), PSU Bank (2.08 per cent), Commodities (1.90 per cent), Telecommunication (1.88 per cent), Focused IT (1.81 per cent) and Bankex (1.42 per cent). Healthcare emerged as the only winner.
A total of 2,794 stocks declined, while 1,496 advanced and 157 remained unchanged on the BSE. “Market sentiment weakened as early gains proved unsustainable amid negative global cues and prevailing caution. Profit booking after the recent rally further intensified downside pressure, resulting in broad-based weakness across key sectors,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Most sectoral indices ended in red, with metals recording the sharpest decline due to falling global prices and demand concerns amid an uncertain global outlook, he said. “The domestic IT sector also remained under pressure, reflecting the global tech rout and persistent concerns over AI-led disruptions in the Indian IT space,” Nair added.
Brent crude, the global oil benchmark, declined 0.67 per cent to USD 77.46 per barrel.
On Monday, the Sensex climbed 291.17 points, or 0.38 per cent, to settle at 77,094.07. The Nifty surged 89.80 points, or 0.37 per cent, to end at 24,102.90. PTI SUM MR
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