Equity benchmark BSE Sensex tumbled nearly 700 points to sink below the 79,000 level on Tuesday, extending its losses for the second straight day due to selling pressure in HDFC Bank, SBI and ITC amid fresh foreign capital outflows.
Besides, deep losses in commodity, banking and financial stocks and concerns over stretched valuation contributed to the steep market decline, analysts said.
The 30-share BSE Sensex tumbled 692.89 points or 0.87 per cent to settle at 78,956.03. During the day, it tanked 759.54 points or 0.95 per cent to 78,889.38. The NSE Nifty slumped 208 points or 0.85 per cent to 24,139. A total of 2,676 stocks declined while 1,266 advanced and 84 remained unchanged on the BSE.
“The domestic market plunged into red terrain in the latter half, amidst mixed global sentiments. Recent IIP data indicates a lacklustre growth in the major manufacturing sector. Persistent selling by FIIs and elevated valuations are further contributing to the decline. “All sectors, especially banking, metal were in red, while HDFC Bank declined due to lower-than-expected passive fund inflows in the recent MSCI index rejig,” said Vinod Nair, Head of Research, Geojit Financial Services.
From the 30 Sensex firms, HDFC Bank declined over 3 per cent. Tata Steel, Bajaj Finance, State Bank of India, Tata Motors, Power Grid and JSW Steel were the other laggards.
In contrast, Titan, HCL Tech, Nestle, Sun Pharma, Reliance and Mahindra & Mahindra were the gainers. Seven firms, including Vodafone Idea and Oil India, would be included in the MSCI India Index effective August 30, 2024, as per the latest index review by MSCI.
Dixon Technologies (India), Oil India, Oracle Financial Services Software, Prestige Estates Projects, Rail Vikas Nigam, Vodafone Idea and Zydus Lifesciences are the additions to the MSCI India Index, according to an announcement by index compiler MSCI.
