Markets fall dragged by IT stocks, foreign fund outflows

Benchmark stock indices Sensex and Nifty declined on Thursday due to selling in IT stocks and continuous foreign fund outflows.

The 30-share BSE Sensex declined 359.64 points or 0.51 per cent to settle at 70,700.67. During the day, it plunged 741.27 points or 1.04 per cent to 70,319.04.

The Nifty fell by 101.35 points or 0.47 per cent to 21,352.60.

Among Sensex shares, Tech Mahindra fell by over 6 per cent after the company reported a 60 per cent decline in net profit to Rs 510.4 crore in the December quarter.

Bharti Airtel, ITC, HCL Technologies, Asian Paints, Wipro, HDFC Bank, Nestle, Tata Steel, Tata Consultancy Services and Maruti were among the other major laggards.

NTPC, ICICI Bank, IndusInd Bank, Reliance Industries, JSW Steel, Bajaj Finance, Bajaj Finserv and Mahindra & Mahindra were among the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory.

European markets were trading mostly lower. The US markets ended on a mixed note on Wednesday.

Foreign institutional investors (FIIs) offloaded equities worth Rs 6,934.93 crore on Wednesday, according to exchange data.

Global oil benchmark Brent crude climbed 1.02 per cent to $80.96 a barrel.

The BSE benchmark jumped 689.76 points, or 0.98 per cent, to settle at 71,060.31 on Wednesday. The NSE Nifty ended 215.15 points, or 1.01 per cent, higher at 21,453.95.

Slight edge for rupee

The rupee rose 1 paisa in a range-bound trade to close at 83.11 (provisional) against the US dollar on Thursday, as the support from weak American currency overseas was negated by rising crude oil prices.

Forex traders said the rupee is trading in a narrow range as muted domestic equities and sustained foreign fund outflows dented investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.13 against the greenback. The unit oscillated between an intraday low of 83.14 and a high of 83.08 and finally settled at 83.11 (provisional) against the dollar, 1 paisa higher from its previous close.

On Wednesday, the rupee had settled at 83.12 against the US dollar.

The rupee traded on a flat note amid weak domestic markets and rising crude oil prices. Foreign fund outflows also weighed on the domestic currency, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

However, the American currency was trading on a muted note, as traders pared their positions ahead of US Q4-2023 GDP data capped sharp gains.

"We expect the rupee to trade with a slight negative bias on weak domestic markets and geopolitical tensions in the Middle East. The Red Sea issue, rising crude oil prices, and selling pressure from foreign investors may also dent the rupee.

"Traders may remain cautious ahead of GDP, weekly unemployment claims, durable goods orders and new home sales data from the US. Investors may also watch out for ECB monetary policy decisions. USD/INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50," Choudhary added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent lower at 103.17 on Wednesday.

Brent crude futures, the global oil benchmark, surged1.02 per cent to $80.96 a barrel.

Oil on the rise

Crude oil prices on Thursday increased Rs 51 to Rs 6,304 per barrel in futures trade as participants widened their positions following a firm spot demand.On the Multi Commodity Exchange, crude oil for February delivery traded higher by Rs 51, or 0.82 per cent, at Rs 6,304 per barrel in 11,199 lots.

Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude oil was up by 0.99 per cent to $75.83 per barrel, and Brent crude traded 0.87 per cent up1.02 per cent at $80.96 a barrel. in New York.