Mumbai, Oct 30 (PTI) Equity markets fell sharply on Thursday, with the Sensex tumbling 592.67 points and the Nifty declining to 25,877.85 level, as fresh foreign fund outflows and uncertainty on the future course of rate action by the US Federal Reserve dampened investors’ sentiment.
The 30-share BSE Sensex tanked 592.67 points or 0.70 per cent to settle at 84,404.46. During the day, it dropped 684.48 points or 0.80 per cent to 84,312.65.
A total of 2,291 stocks declined while 1,876 advanced and 155 remained unchanged on the BSE.
The 50-share NSE Nifty tumbled 176.05 points or 0.68 per cent to 25,877.85.
From the Sensex firms, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, Bajaj Finance and Reliance Industries were among the major laggards.
However, Larsen & Toubro, Bharat Electronics, UltraTech Cement and Maruti were among the gainers.
“Equity benchmarks slipped on Thursday as cautious commentary from the US Federal Reserve and renewed foreign fund outflows weighed on sentiment. The Fed’s 25 bps rate cut was in line with expectations, but Chair Jerome Powell’s indication of a pause in further easing dampened risk appetite, especially amid the ongoing US government shutdown,” Gaurav Garg, Research Analyst, Lemonn Markets Desk, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,540.16 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs) bought equities worth Rs 5,692.81 crore in the previous trade.
“As expected, the US Fed cut interest rates by 25 bps. However, the market consolidated after Chair Jerome Powell indicated that this might be the last rate cut of 2025, tempering hopes of further monetary easing. The resulting strength in the US dollar contributed to a risk-off sentiment across emerging markets, including India,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
The BSE smallcap gauge dipped 0.06 per cent and midcap index ended unchanged.
BSE telecommunication tanked 2.52 per cent, teck (1.02 per cent), bankex (0.72 per cent), financial services (0.59 per cent) and BSE Focused IT (0.55 per cent). Energy, industrials, capital goods, oil & gas and realty ended higher.
In Asian markets, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled lower while South Korea’s Kospi and Japan’s Nikkei 225 index ended in the positive territory.
Markets in Europe were trading lower. US markets ended on a mixed note on Wednesday.
“Profit-taking has taken centre stage on the back of weak European and Asian cues, while investors also exercised caution after the US Fed chairman indicated that further rate cuts over next two months look unlikely,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Global oil benchmark Brent crude dipped 0.59 per cent to USD 64.54 a barrel.
On Wednesday, the Sensex climbed 368.97 points or 0.44 per cent to settle at 84,997.13. The Nifty went up by 117.70 points or 0.45 per cent to 26,053.90. PTI SUM ANU ANU
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