Stock markets fall for second day, Sensex crashes 721 points amid broad sell-off in IT, finance and energy stocks

Friday saw stock markets fall for the second consecutive day, with the Sensex plunging 721 points as a result of strong selling in IT, financial, and oil and gas stocks amid ongoing outflows of foreign funds.

The 30-share BSE Sensex tumbled 721.08 points, or 0.88%, to close at 81,463.09 — its lowest level in over a month. In intraday trade, it fell as much as 786.48 points, or 0.95%, to touch 81,397.69.

At 24,837, the 50-share NSE Nifty fell 225.10 points, or 0.90 percent, to its lowest level in a month.

Investor mood was further damaged, according to analysts, by a dismal trend in the European and Asian markets.

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Vinod Nair, Head of Research, Geojit Investments Limited, said, “Subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure.”

Following the release of its June quarter earnings, Bajaj Finance saw a 4.73 percent fall among Sensex companies. Among the laggards were Power Grid, Infosys, Tech Mahindra, Trent, Bajaj Finserv, Tata Motors, NTPC, and Adani Ports.

But Bharti Airtel and Sun Pharma came out on top.

According to exchange data, foreign institutional investors (FIIs) sold off equities worth Rs 2,133.69 crore on Thursday. Nonetheless, stocks valued at Rs 2,617.14 crore were purchased by Domestic Institutional Investors (DIIs).

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In Asian markets, South Korea’s Kospi concluded the day in positive territory, but Hong Kong’s Hang Seng, Shanghai’s SSE Composite index, and Japan’s Nikkei 225 index all settled lower.

The markets in Europe were trading lower. Thursday saw a mixed finish for US markets.

India and the UK signed a landmark free trade agreement on Thursday, which, starting next year, will see 99 per cent of Indian exports enter the UK duty-free, while reducing tariffs on British products such as cars and whisky.

The deal, which comes days ahead of the US moratorium on higher tariffs coming to an end, aims to double the USD 56 billion trade between the world’s fifth and sixth largest economies by 2030.

Global oil benchmark Brent crude climbed 0.32 per cent to USD 69.40 a barrel.

On Thursday, the Sensex tanked 542.47 points or 0.66 per cent to settle at 82,184.17. The Nifty dropped 157.80 points or 0.63 per cent to 25,062.10.