Outflows of foreign funds dominate the indices; Energy stocks on the decline – WeForNews


Mumbai, November 17: Foreign cash outflows along with concerns about inflation and moderate earnings reservations weighed on major Indian stock indexes – S&P BSE Sensex and NSE Nifty50 – on Tuesday.

FIIs sold Rs 560.67 crore on BSE, NSE and MSEI in the capital market segment during the day.

Initially, both indices opened in the red and saw selling pressure throughout the day.

Globally, however, Asian stock markets rose on Tuesday after President Joe Biden and China’s Xi Jinping held a summit meeting via video link. In addition, several European indices hit record highs on Tuesday, boosted by signs of easing US-China tensions, solid earnings and accommodating statements from the head of the European Central Bank.

Domestically, the market was dragged down by losses in energy, banking and oil and gas stocks, amid growing inflation concerns. The 30-stock Sensex closed at 60,322.37 points, down 396.34 points, or 0.65%, from its previous close.

Likewise, the NSE Nifty50 ended the day’s session on a lower note, falling to 17,999.20 points, down 110.25 points, or 0.61%, from its previous close.

“Nifty stuck to the ‘doji’ formation the day before and sold out on Nov. 16,” said Deepak Jasani, head of retail research at HDFC Securities.

“18,102 – 18,139 is the resistance band now for the Nifty while 17,874 – 17,906 is the support band. The volumes and rate of decline of advances continue to disappoint.

According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Nationally, excessive valuations with a number of global financial services companies maintaining a cautious view of Indian stocks affected market sentiment.

“Global markets have remained stable. Gold hit five-month high on fears of rising inflation and strengthening currency and bond yields. “

Additionally, Vinod Nair, Head of Research at Geojit Financial Services, said: “The domestic market started to trade between gains and losses before slipping into the red with strong sales of bank stocks and pharmaceuticals. RBI’s statement that stock valuations are stretched added to the pressure, but mid and small caps outperformed.

Global markets remained mixed at the end of the Biden-Xi meeting, with both sides calling for more cooperation. European and US markets are trading almost flat ahead of the release of data on Eurozone GDP and retail sales in the United States for the third quarter. “

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