New Delhi: Equity benchmark indices Sensex and Nifty tumbled nearly 1 percent on Thursday due to heavy selling in market heavyweights HDFC Bank, TCS and Reliance as investors turned nervous over earnings growth concerns amid unabated foreign capital outflows.
Besides, abysmally low Chinese inflation data, an indication of poor demand, and a sell-off in US bonds added to the pressure, traders said.
Sliding for the second straight day, the 30-share benchmark dropped 528.28 points or 0.68 percent to sink below the 78,000 level at 77,620.21. During the day, it tanked 605.57 points or 0.77 percent to 77,542.92.
"The Indian stock market mirrored the decline across its Asian peers, with cautious investor sentiment driven by a sell-off in US bonds. The US 10-year Treasury yield surged to its highest level since April 2024, signalling the expectation of fewer rate cuts by the Fed.
"Further, disappointing inflation data from China added pressure, indicating that recent stimulus measures have failed to rejuvenate one of the world's largest consumer markets," Vinod Nair, Head of Research, Geojit Financial Services, said.
From 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.
Meanwhile, India's largest IT services company TCS reported an 11.95 per cent jump in net profit to Rs 12,380 crore for the December quarter. The financial results were announced after market hours.
The BSE smallcap gauge tanked 1.17 percent while the midcap index declined 0.96 per cent.
FMCG emerged as the only gainer.
In Asian markets, Seoul settled in positive territory, while Tokyo, Shanghai and Hong Kong ended lower.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,362.18 crore on Wednesday, according to exchange data.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)