Sensex, Nifty fall amid FII outflows, rupee weakness and sectoral losses

Equity benchmark indices Sensex and Nifty declined in early trade on Monday weighed down by losses in services and realty stocks and sustained foreign fund outflowsThe 30share BSE Sensex dropped 31652 points or 037 per cent to 8539585 in the morning tradeThe 50share NSE Nifty declined by 10670 points or 041 per cent to 2607975From the Sensex firms Bajaj Finance Bharat Electronics Ltd Axis Bank Bajaj Finserv Maruti Suzuki India Asian Paints Mahindra amp Mahindra NTPC ICICI Bank PowerGrid Hindustan Unilever and Larsen amp Toubro were the laggardsHowever Tech Mahindra Infosys Eternal Reliance Industries Tata Motors Passenger Vehicles Tata Consultancy Services Trent HCL Technologies and Tata Steel were among the gainersEmerging positive and negative news have the potential to keep the market volatile in the neartermRobust economic growth and indications of earnings growth revival are supportive of marketsThe massive fiscal and monetary stimulus to the economy this year has contributed to sharp revival in GDP growth as evidenced by the 82 per cent Q2 GDP growth print and RBIs upward revision of FY 26 GDP growth to 73 per cent augurs well for the market VK Vijayakumar Chief Investment Strategist Geojit Investments Ltd saidHe noted that low GDP deflator consequent to low inflation has impacted nominal GDP growth and corporate earnings growthBut from the leading indicators it is clear that about 15 per cent earnings growth is achievable in FY27This is positive for the marketHowever there are strong negatives too which can impact the market Sustained depreciation of the rupee has been forcing FIIs to sell in the market continuously Vijayakumar addedMeanwhile foreign institutional investors FIIs offloaded equities worth Rs 43890 crore on Friday while Domestic Institutional Investors DIIs bought stocks worth Rs 418917 crore according to exchange dataIn Asian markets Japans Nikkei 225 Shanghais SSE Composite index and South Koreas Kospi were trading in the green territory while Hong Kongs Hang Seng index was quoting in the red zoneUS markets ended higher on FridayAmerican equities posted modest broadbased gains last week supported by softer inflation data and resilient macroeconomic indicators that sustained expectations of Federal Reserve rate cuts Devarsh Vakil Head of Prime Research HDFC Securities saidHe noted that investors positioned cautiously ahead of the upcoming Federal Open Market Committee FOMC meeting additional inflation releases and yearend portfolio adjustmentsBrent crude the global oil benchmark rose 013 per cent to USD 6383 per barrelOn Friday the 30share BSE Sensex benchmark advanced 44705 points to settle at 8571237 while the 50share NSE Nifty climbed 15270 points to close at 2618645This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever