- News Updates
- PSU Watch
- Defence News
- Policy Watch
- हिन्दी न्यूज़
- Jobs Watch
- States News
- Event News
New Delhi: Indian stock markets extended their losing streak for a third consecutive session on Thursday, with benchmark indices Sensex and Nifty falling sharply in early trade as global economic uncertainties and rising energy prices dampened investor sentiment.
The 30-share BSE Sensex tumbled 678.90 points, or 0.92 percent, to 73,030.79, while the NSE Nifty dropped 250.90 points, or 1.10 percent, to 22,568.10 during morning trading.
Follow The PSUWatch Channel on Whatsapp
Selling pressure was particularly pronounced in power, metals, automobiles and financial stocks, reflecting growing investor concerns over the impact of expensive crude oil and persistently high US bond yields on corporate profitability and economic growth.
Power Grid, Bharat Electronics Ltd (BEL), Tata Steel, NTPC, HDFC Bank, Maruti Suzuki, Mahindra & Mahindra, Adani Ports, Asian Paints, Trent, Bajaj Finserv, IndiGo and Hindustan Unilever were among the major Sensex losers.
However, select technology and telecom stocks provided some support. Bharti Airtel, Infosys and HCL Technologies traded in positive territory.
Eternal, the parent company of Zomato and Blinkit, bucked the broader market weakness, gaining more than 2 percent after reporting a consolidated net profit of Rs 125 crore for the September quarter, compared with Rs 65 crore in the corresponding period last year.
One of the biggest concerns for investors was the renewed surge in international oil prices.
Brent crude climbed nearly 2 percent to USD 110.68 per barrel, raising concerns about inflation, India's import bill and pressure on corporate margins.
The weakness was not confined to Indian markets. Asian equities witnessed substantial losses, with South Korea's Kospi plunging 3.12 percent and Hong Kong's Hang Seng falling 3 percent.
Japan's Nikkei 225 declined 1.94 percent, while China's Shanghai Composite slipped nearly 1 percent.
The widespread decline in Asian markets came despite Wall Street closing higher in the previous session.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, pointed to an emerging correction in the valuation gap between large-cap stocks and their mid- and small-cap counterparts.
According to Vijayakumar, liquidity-driven gains have pushed valuations of several mid- and small-cap companies to elevated levels, even as many large-cap stocks remain relatively attractive.
He suggested that this valuation imbalance was beginning to unwind and could continue influencing market movements.
Vijayakumar also attributed the sustained selling pressure to expensive crude oil and high US bond yields, which have encouraged bearish positions despite continued institutional purchases.
Interestingly, the market weakness has persisted despite buying by both foreign and domestic institutional investors.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,022.32 crore on Wednesday, while Domestic Institutional Investors (DIIs) invested Rs 1,614.32 crore, according to exchange data.
However, the combined institutional inflows were insufficient to prevent benchmark indices from closing lower.
Follow PSU Watch on LinkedIN
On Wednesday, the Sensex declined 143.21 points to settle at 73,709.69, while the Nifty lost 77.60 points to close at 22,811.35.
The latest decline highlights a growing challenge for Indian equities: domestic institutional liquidity may provide some cushion, but it cannot fully insulate markets from global risk aversion, expensive energy imports and concerns over stretched valuations.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)
