Sensex Falls 519 Points as Global Weakness and FII Selling Drag Markets Down

Indian markets closed lower on Tuesday as global weakness and sustained FII selling hit investor sentiment. Sensex dropped 519 points to 83,459 while Nifty slipped 165 points to 25,597. Power Grid and Tata Motors led the decline.

New Delhi: Indian stock markets witnessed a sharp decline on Tuesday. Continuous selling by foreign institutional investors (FIIs) and weakness in Asian and European markets negatively impacted domestic investor sentiment.

Sensex and Nifty fall

The BSE Sensex closed down 519.34 points, or 0.62%, at 83,459.15. During trading, it had slipped by as much as 565 points. The NSE Nifty fell 165.70 points (0.64%) to close at 25,597.65. This was the second consecutive session that the market closed in the red.

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Which stocks declined?

Most of the 30 Sensex stocks registered declines. Power Grid shares fell the most, by 3.13%, after the company reported a decline in its September quarter profit. Tata Motors, Tata Steel, Maruti, Bharat Electronics, and Eternal also saw declines.

However, Titan, Bharti Airtel, Bajaj Finance, Mahindra & Mahindra, and SBI shares gained. Titan shares rose 2.28% as the company's net profit increased by 59% to ₹1,120 crore in the September quarter.

Market experts' views

According to Vinod Nair (Geojit Investments Limited), the market remained under pressure due to weak global cues and declines in the metal, power, and IT sectors.

Rising US bond yields and reduced expectations of interest rate cuts by the Federal Reserve have made investors cautious. FIIs continued their selling for the fourth consecutive day, further exacerbating the market decline.

Ajit Mishra (Religare Broking Limited) said that profit-booking in large-cap companies and foreign capital outflows weakened market sentiment.

Foreign investment and index status

On Monday, FIIs sold shares worth ₹1,883.78 crore, while DIIs bought shares worth ₹3,516.36 crore. The BSE Smallcap index fell 0.69%, and the Midcap index declined 0.26%. A total of 2,549 shares listed on the BSE declined, while 1,618 advanced and 162 remained unchanged.

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Global Market Overview

Asian markets, including Japan's Nikkei, China's Shanghai Composite, South Korea's Kospi, and Hong Kong's Hang Seng, all closed lower. European markets also remained weak, while US markets closed marginally higher on Monday. Brent crude fell 1.34% to $64.02 per barrel.