Sensex tumbles 660 pts amid widespread selloff; slips below 80k on unabated fund outflows, weak Q2

Mumbai: Declining for the fifth straight session, equity benchmark Sensex Friday plunged about 660 points to crash below the 80,000 level due to widespread selling pressure tracking massive foreign capital outflows and muted earnings growth.

Besides, deep losses in energy, consumer durable and industrial stocks and surging global crude prices amid geopolitical uncertainties added to the gloom, analysts said.

The BSE Sensex plummeted 662.87 points or 0.83 per cent to settle at 79,402.29. During the day, it plunged 927.18 points or 1.15 per cent to 79,137.98.

A total of 3,101 stocks declined, while 841 advanced and 79 remained unchanged on the BSE.

The NSE Nifty tanked 218.60 points or 0.90 per cent to 24,180.80. The index closed lower for the fourth consecutive week.

On the weekly front, the BSE benchmark tanked 1,822.46 points or 2.24 per cent, and the Nifty fell by 673.25 points or 2.70 per cent.

“The domestic market faced a continuous fall due to persistent FII selling. All sectors, except FMCG, were impacted, with small and midcap stocks suffering the most. However, DII have been a strong buyer absorbing the selling and mitigating the fall. Due to the regressive selling, the domestic market is expected to reach the oversold territory,” said Vinod Nair, Head of Research, Geojit Financial Services.

From the 30 Sensex pack, IndusInd Bank plunged over 18.50 per cent after the firm reported a 40 per cent decline in September quarter net profit at Rs 1,331 crore, pulled down by concerns over its asset quality.

Mahindra & Mahindra, Larsen & Toubro, NTPC, Adani Ports, Tata Steel, Maruti, Bajaj Finance and Titan were also among the laggards.

In contrast, Axis Bank, Hindustan Unilever, Sun Pharma and ICICI Bank were the other big gainers.

“The market correction continues, with Nifty down 7.8 per cent from its recent peak and volatility remaining high as India VIX hits 14.7. Q2 results have shown a slowdown in consumer sectors, including autos and FMCG, where sluggish demand, rising competition, and high input costs have impacted margins,” Krishna Appala, Senior Research Analyst, Capitalmind Research, said.

ITC climbed over 2 per cent after the diversified entity reported an 1.8 per cent increase in its consolidated net profit to Rs 5,054.43 crore in the second quarter ended September 2024.

“Nifty ended on a weak note Friday near two-and-half-month lows despite the last-hour bounce. It fell for the fifth consecutive session,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

Indian markets have fallen on all days of the week reeling under FPI selling pressure, weak Q2 results from most corporates and rising treasury yields in the US, Jasani said.

“Though a bounce in the markets is overdue, it needs a reversal of selling pressure from FPIs and some sentiment stability in the local investor community,” he added.

The BSE smallcap gauge declined by 2.44 per cent, and the midcap index fell by 1.48 per cent.

Among sectoral indices, oil & gas plunged 3.09 per cent, consumer durables tumbled 2.74 per cent, services (2.69 per cent), energy (2.66 per cent), utilities (2.53 per cent), telecommunication (2.38 per cent) and capital goods (2.23 per cent).

FMCG emerged as the only gainer.

“Despite challenges in the broader market, large private banks have performed relatively well, maintaining stable net interest margins. However, expensive valuations in most other sectors, particularly consumer-facing industries, suggest caution. Investors should avoid overexposure to high P/E stocks, as earnings miss or lack of positive surprises could trigger further corrections,” Appala noted.

In Asian markets, Seoul, Shanghai and Hong Kong settled higher, while Tokyo ended lower.

European equity markets were trading in positive territory. The US markets ended mostly higher Thursday.

Global oil benchmark Brent crude climbed 0.42 per cent to $74.69 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,062.45 crore Thursday, while Domestic Institutional Investors (DIIs) bought Rs 3,620.47 crore shares, according to exchange data.

“We can expect a tactical bounce in the near term. The resilience of recent manufacturing data suggests the plausibility of an economic recovery in H2FY25, which should encourage investors to accumulate quality stocks,” Nair said

In the previous session, the BSE benchmark Sensex dipped 16.82 points or 0.02 per cent to settle at 80,065.16. The Nifty skidded 36.10 points or 0.15 per cent to 24,399.40 in a volatile trade.

PTI