]
Business: Benchmark indices Sensex and Nifty fell in early trade on Friday due to continuous outflow of foreign capital and weak trend in global markets. The 30-share BSE Sensex fell 631.93 points to 82,679.08 in early trade. The 50-share NSE Nifty fell 184.55 points to 25,325.15. The rupee fell 3 paise to 88.66 per dollar in early trade on Friday as the US currency strengthened against its major rivals and foreign investors continued to withdraw funds from the Indian capital market.
Condition of Sensex companies
Among Sensex companies, Bharti Airtel, HCL Tech, Tech Mahindra, NTPC, Tata Consultancy Services and Maruti were the biggest losers. Whereas ITC, ICICI Bank, Eternal and Power Grid were in profit.
Decline seen in Asian markets
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index declined heavily. Shanghai’s SSE Composite index closed with a slight decline. American markets closed with a huge fall on Thursday.
The activities of foreign and domestic investors had an impact
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said that an important feature of the current market trend is that despite far more buying by DIIs than selling by FIIs (DII buying of Rs 5,283 crore yesterday vs FII selling of Rs 3,263 crore), the market continues to fall. Heavy shorting by FIIs is weighing on buying by DIIs and investors in the market.
He said that the continuous selloff in India and the success of the FII strategy of investing money in cheap markets has encouraged him to continue this strategy and continue shorting the market. Short covering could reverse the trend, but there is no immediate trigger in sight. But markets have an amazing ability to surprise.”
The price of Brent crude increased to $ 63.57 per barrel.
Global oil benchmark Brent crude rose 0.30 percent to $63.57 per barrel. According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 3,263.21 crore on Thursday, however, domestic institutional investors (DIIs) bought shares worth Rs 5,283.91 crore. On Thursday, the Sensex closed 148.14 points or 0.18 per cent lower at 83,311.01. Nifty fell 87.95 points or 0.34 percent and closed at 25,509.70.
