New Delhi: Falling for the fourth straight day, benchmark Sensex declined by nearly 425 points on Friday due to selling in auto, pharma and banking shares and relentless foreign fund outflows.
The 30-share BSE benchmark Sensex dropped 424.90 points or 0.56 percent to settle at 75,311.06. During the day, it tanked 623.55 points or 0.82 percent to 75,112.41.
The NSE Nifty declined 117.25 points or 0.51 percent to 22,795.90.
In four trading days, the BSE barometer tumbled 685.8 points or 0.90 percent while the Nifty declined 163.6 points or 0.71 percent.
From the Sensex pack, Mahindra & Mahindra tanked over 6 percent.
Adani Ports, Tata Motors, Sun Pharma, Power Grid, Zomato, ICICI Bank, State Bank of India and UltraTech Cement were also among the laggards.
Tata Steel, Larsen & Toubro, HCL Tech, Asian Paints, HDFC Bank and NTPC were among the gainers.
"A combination of negative factors such as relentless FII selling, falling rupee, expensive valuations and the US threat of reciprocating tariff levies continue to drive investors away from Indian equities.
"In fact, local benchmarks under-performed both Asian and European indices, which logged significant gains. Barring metals, the slump in domestic markets was led by weakness in banking, IT, telecom, auto, realty and oil & gas shares," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,311.55 crore on Thursday, according to exchange data.
The BSE midcap gauge declined 1.18 percent and smallcap index dipped 0.43 percent.
Among BSE sectoral indices, auto dropped 2.60 percent, consumer discretionary (1.49 percent), oil & gas (1.42 percent), realty (1.33 percent), telecommunication (1.19 percent) and consumer durables (0.87 percent).
Metal emerged as the only gainer and jumped 1.23 percent.
As many as 2,246 stocks declined, while 1,701 advanced and 113 remained unchanged on the BSE.
On the weekly front, the BSE benchmark declined 628.15 points or 0.82 percent and the Nifty went lower by 133.35 points or 0.58 percent.
The domestic market continued to exhibit broad-based weakness, primarily influenced by investor concerns over the hawkish tone of the FOMC minutes, which signalled prolonged higher interest rates that could constrain liquidity in emerging markets, Vinod Nair, Head of Research, Geojit Financial Services, said.
"Although the market has undergone a healthy correction, the uncertainties surrounding the gradual recovery of corporate earnings and ongoing tariff-related risks continue to cast doubt on valuation levels, particularly in the broader market. India is currently lagging behind its Asian peers, as FII outflows remain high, with the "sell India, buy China" strategy continuing to yield returns for the time being," he added.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory. European markets were quoting mostly higher. US markets ended lower on Thursday.
Global oil benchmark Brent crude dipped 0.59 percent to USD 76.05 a barrel.
(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.)