Sensex, Nifty fall around 1% due to continued foreign capital outflows; Focus on TCS earnings

Equity benchmark indices Sensex and Nifty fell around 1 per cent each on Thursday led by heavy selling in market majors HDFC Bank, TCS and Reliance as investors became worried over earnings growth concerns amid continued foreign capital outflows.

Besides, traders said extremely low inflation data in China, weak demand signals and a selloff in US bonds added to the pressure.

TCS will release its December quarter results calendar on Thursday.

Falling for the second consecutive day, the 30-share benchmark fell 528.28 points or 0.68 per cent to 77,620.21, below the 78,000 level. During the day it fell 605.57 points or 0.77 percent to 77,542.92.

NSI Nifty fell 162.45 points or 0.69 per cent to 23,526.50.

In the 30-share Sensex blue-chip pack, Tata Steel, Zomato, Larsen & Toubro, Tata Motors, Adani Ports, Tata Consultancy Services, HDFC Bank and NTPC were the major laggards.

Nestle, Hindustan Unilever, Mahindra & Mahindra, Kotak Mahindra Bank, Asian Paints and Bharti Airtel were among the gainers.

According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 3,362.18 crore on Wednesday.

“The Indian stock market showed a similar decline as its Asian counterparts, with investors' cautious sentiment led by selling in US bonds. US 10-year Treasury yields rose to their highest since April 2024, signaling expectations of fewer rate cuts by the Fed.

“Additionally, disappointing inflation data from China added to the pressure, indicating that recent stimulus measures have failed to rejuvenate one of the world's largest consumer markets,” Vinod, head of research at Geojit Financial Services. Nair said.

In Asian markets, Seoul closed in positive territory, while Tokyo, Shanghai and Hong Kong closed lower.

Trading was taking place in European markets with mixed sentiments. On Wednesday, US markets closed mostly in the green.

Global oil benchmark Brent crude fell 0.11% to US$76.05 per barrel.

The BSE benchmark closed 50.62 points or 0.06 per cent lower at 78,148.49 on Wednesday. A decline was recorded in Nifty. It closed at 23,688.95 points, down 18.95 points or 0.08 percent.